Are Company Valuation Models the Same? – A Comparative Analysis between the Discounted Cash Flows (DCF), the Adjusted Net Asset, Value and Price Multiples, the Market Value Added (MVA) and the Residual Income (RI) Models

Ion Stancu, Laura Obrejabraşoveanu (), Anamaria Ciobanu () and Andrei Tudor Stancu
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Laura Obrejabraşoveanu: The Bucharest University of Economic Studies
Anamaria Ciobanu: The Bucharest University of Economic Studies
Andrei Tudor Stancu: Norwich Business School

ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, 2017, vol. 51, issue 3, 5-20

Abstract: In this article, we analyze and compare several well-known methods of company valuation. In particular, we focus on the income approach (discounted cash flows, the market value added or residual income), the assets approach (net asset), and the market approach (based on value and price multiples) to value companies. This initiative aims to identify the hypothesis considered and to test the equivalence of the results obtained by these valuation methods.

Keywords: discounted cash flows; net asset; value and price multiples; the market value added; residual income (search for similar items in EconPapers)
JEL-codes: D46 G12 G31 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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