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March 2019 (published: 27.03.2019)
Number 1(36)
Home > Issue > and methods of evaluation of business and stock market instruments
Kovalenko A.V., Nikiforova V.D., Nikiforov A.A.
The article analyzes the scientific views on the problem of the use of cost, income and comparative methods in practice to assess the value of business and financial instruments in Russia. The authors reveal the importance of the application of these methods for the domestic stock market, characterized by weakly effective with certain properties of fractality and coherence. Special attention is paid to the analysis of difficulties that arise in connection with the application of these methods. The article reveals the peculiarities and difficulties of applying the cost method estimates the value of the business due to the mismatch between domestic and overseas accounting standards of assets and accounting records of the company. The authors substantiate the expediency of using the modification of the cost method based on the calculation of additional indicators and the implementation of additional adjustments, which allows to reduce the forecast errors of business valuation and stock market instruments. The article argues for the feasibility of modifying the income method and the comparative method. To increase the level of representativeness of the income estimation method, approaches are proposed for choosing the discount rate, using the scenario approach to the β-coefficient, as well as the standard of this indicator. As part of the modification of the comparative method, the authors propose to calculate the average values of financial multipliers and determine the level of prediction error for each multiplier. The article concludes that the use of the average value arises if it is assumed that the individual financial multipliers tend to the average value; it is important to take into account that even in the presence of the dynamics of convergence there are limits of change.
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Keywords: methodology of business valuation, modification of existing methods of business valuation and financial instruments, the error of the forecast.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 336.76
and methods of evaluation of business and stock market instruments
The article analyzes the scientific views on the problem of the use of cost, income and comparative methods in practice to assess the value of business and financial instruments in Russia. The authors reveal the importance of the application of these methods for the domestic stock market, characterized by weakly effective with certain properties of fractality and coherence. Special attention is paid to the analysis of difficulties that arise in connection with the application of these methods. The article reveals the peculiarities and difficulties of applying the cost method estimates the value of the business due to the mismatch between domestic and overseas accounting standards of assets and accounting records of the company. The authors substantiate the expediency of using the modification of the cost method based on the calculation of additional indicators and the implementation of additional adjustments, which allows to reduce the forecast errors of business valuation and stock market instruments. The article argues for the feasibility of modifying the income method and the comparative method. To increase the level of representativeness of the income estimation method, approaches are proposed for choosing the discount rate, using the scenario approach to the β-coefficient, as well as the standard of this indicator. As part of the modification of the comparative method, the authors propose to calculate the average values of financial multipliers and determine the level of prediction error for each multiplier. The article concludes that the use of the average value arises if it is assumed that the individual financial multipliers tend to the average value; it is important to take into account that even in the presence of the dynamics of convergence there are limits of change.
Read the full article
Keywords: methodology of business valuation, modification of existing methods of business valuation and financial instruments, the error of the forecast.
DOI 10.17586/2310-1172-2019-12-1-26-32