Discounted cash-flow and economic value added methods in corporate valuation
Thuy Linh Nguyen, Vu (2013)
Lahden ammattikorkeakoulu
2013
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201305025940
https://urn.fi/URN:NBN:fi:amk-201305025940
Tiivistelmä
This thesis introduces and compares the two most popular valuation methods in corporate finance: DCF and EVA by applying both of these into the Case Company.
It employs the deductive approach and quantitative research method to analyze the Case Company financial statement. While the theoretical part includes only the secondary type of sources such as published books, journals, and articles, primary type sources will be included in the empirical part.
In order to achieve the goal, in the theoretical part, the author has focused on the valuation principles. After that, two chosen valuation methods which are DCF and EVA are described more.
The Case Company can use this thesis to analyze their own financial situation as well as to attract new investors. It can also add more advantages in acquisition or merging negotiation. All relevant data is exacted from the Case Company’s financial report concerning the year 2011 and 2012 to forecast the company financial situation in the near future. After the calculating process, the value of the company is 33.225.072€ ± 10%. That is the average result of the two valuation methods. It is concluded with the comparison between the two valuation methods. The EVA valuation method seems to have more advantages since it is based on a simple concept, less estimating numbers and simpler to implement.
It employs the deductive approach and quantitative research method to analyze the Case Company financial statement. While the theoretical part includes only the secondary type of sources such as published books, journals, and articles, primary type sources will be included in the empirical part.
In order to achieve the goal, in the theoretical part, the author has focused on the valuation principles. After that, two chosen valuation methods which are DCF and EVA are described more.
The Case Company can use this thesis to analyze their own financial situation as well as to attract new investors. It can also add more advantages in acquisition or merging negotiation. All relevant data is exacted from the Case Company’s financial report concerning the year 2011 and 2012 to forecast the company financial situation in the near future. After the calculating process, the value of the company is 33.225.072€ ± 10%. That is the average result of the two valuation methods. It is concluded with the comparison between the two valuation methods. The EVA valuation method seems to have more advantages since it is based on a simple concept, less estimating numbers and simpler to implement.