publication . Article . 2015

VALUATION METHODS- LITERATURE REVIEW

Dorisz Talas;
Open Access German
  • Published: 01 Jul 2015 Journal: Annals of the University of Oradea: Economic Science (issn: 1222-569X, eissn: 1582-5450, Copyright policy)
  • Publisher: University of Oradea
Abstract
This paper is a theoretical overview of the often used valuation methods with the help of which the value of a firm or its equity is calculated. Many experts (including Aswath Damodaran, Guochang Zhang and CA Hozefa Natalwala) classify the methods. The basic models are based on discounted cash flows. The main method uses the free cash flow for valuation, but there are some newer methods that reveal and correct the weaknesses of the traditional models. The valuation of flexibility of management can be conducted mainly with real options. This paper briefly describes the essence of the Dividend Discount Model, the Free Cash Flow Model, the benefit from using real o...
Subjects
free text keywords: firm value, residual income, free cash flow, discounted cash flow, Business, HF5001-6182, Finance, HG1-9999
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