Saturday, December 16

Methods of Calculation And Analysis of Enterprise Value

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If debt is a realizable value of the undiscounted amount of cash (or cash equivalent) to be paid to pay obligations under the normal course of business. It can be equal to gross output, net value, ie sale value less costs to sell, the amount of transfer (assignment) done under normal or a liquidation value.

To continue using the property that is a fixed amount based on market prices corrected the condition (wear rate) and good location.

                     4) The present value or amount capitalized at the present time is an estimate of value based on future flows of benefits arising in the normal course of business, or updating a value that becomes available later. In short, it is a current value which is determined by the future.

Methods of calculation and analysis of enterprise value

       Business valuation is intended to end  a basic reference or negotiation. There are over 200 assessment methods used in different countries. Choosing a method or one group is an important moment and it is only the evaluator or team of assessors. This option is influenced by both objective and subjective factors. Among the important valuation methods are:

                     1. Asset valuation method

       Economic methods are based on separate assessment of all elements which have an enterprise at a time. Starting from the principle that the enterprise value is given by the sum of its parts taken separately, that the asset evaluation optics now as disjointed.

       Economic situations – financial enterprises, resulting from the principles and regulations on the accounting records are prepared on historical cost basis for fixed assets based on revaluation.

   The book value of all assets – book value of obligations

                                        =

                      The book value of equity

       In assessing the equity (according to the principles of evaluation) are considered the following equality:

   The current value of the assets – the current value of all obligations

                               =

                   Equity Value

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