Srpski jezikEquity (Capital) valuation
Value management is the backbone of the modern strategic management. Asset and capital valuation becomes an ongoing process aimed to support the top management in making strategic decisions. Most common reasons for the valuation of the company capital (equity) and assets are:
- determing the real market value of the company or equity in strategic decision making
- determing the market value of an equity stake
- status changes (mergers, acquisitions, split-ups)
- determing the selling price of a legal entity in bankruptcy proceedings according to the Serbian Bankruptcy Law
There are three commonly used approaches and various methods of assessing the value of the company or its equity:
- cost approach – net asset value and liquidation value method
- market approach – public company comparables method
- income approach – discounted cash flow method
Capital valuation is a complex process that includes analyzing and evaluating various aspects of a company’s business and environment. The choice of valuation methods depends primarily on the valuation purpose. Our team has vast experience in capital (equity) valuaton for different purposes and of companies of various sizes and from various industries.