Publication detail

The Effects of a Change in the Environment on Business Valuation Using the Income Capitalization Approach

REŽŇÁKOVÁ, M. KARAS, M.

Original Title

The Effects of a Change in the Environment on Business Valuation Using the Income Capitalization Approach

Type

journal article - other

Language

English

Original Abstract

Determining the company value in the conditions of unstable development is a very difficult, almost sophisticated activity. Experience of authors confirms high sensitivity of the resulting company value in relation to critical input parameters, which are known as value drivers. One of these drivers, in case of determining the company value using the income capitalization approach, is the expected sales. In practice some authors, but mainly experts, limit sales forecast to extrapolation of the identified trend of the past development, while neglecting the importance of the strategic analysis. The aim of the strategic analysis is to identify all factors that may influence future company objectives, i.e. also future sales. This article provides a possible approach to the correction of sales forecast based on the information gained from the strategic analysis.

Keywords

strategic analysis, business valuation, sales forecast process

Authors

REŽŇÁKOVÁ, M.; KARAS, M.

RIV year

2012

Released

16. 12. 2012

Publisher

Nicolaus Copernicus University in Toruń

ISBN

1689-765X

Periodical

Equilibrium

Year of study

7

Number

2

State

Republic of Poland

Pages from

119

Pages to

137

Pages count

19

URL

http://apcz.umk.pl/czasopisma/index.php/EQUIL/article/view/EQUIL.2012.014

Full text in the Digital Library

http://hdl.handle.net/11012/69361

BibTex

@article{BUT95917,
  author="Mária {Režňáková} and Michal {Karas}",
  title="The Effects of a Change in the Environment on Business Valuation Using the Income Capitalization Approach",
  journal="Equilibrium",
  year="2012",
  volume="7",
  number="2",
  pages="119--137",
  doi="10.12775/EQUIL.2012.014",
  issn="1689-765X",
  url="http://apcz.umk.pl/czasopisma/index.php/EQUIL/article/view/EQUIL.2012.014"
}