ENHANCING THE ADJUSTMENTS OF MARKET MULTIPLES FOR BETTER OPERATING EFFICIENCY

Nigohos Kanaryan
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Nigohos Kanaryan: New Bulgarian University

Economic Archive, 2019, issue 4 Year 2019, 3-20

Abstract: The study focuses on one of the specific applications of the market approach. The market approach is a valuation method whereby the fair market value of the target company is determined by reviewing comparable companies with similar operational and financial characteristics. The International Valuation Standards (2017) require that a valuer should make adjustments to the selected market multiples. Kasarova, Pramatarska and Lazarova (2009) and Todorov (2015) propose a method for adjusting market multiples for country risk and efficiency when the market approach is applied to emerging markets. We enhance their adjustment approach by removing its inherent restrictions.

Keywords: market approach; amrket multiples; enterprise valuation (search for similar items in EconPapers)
JEL-codes: G12 G30 (search for similar items in EconPapers)
Date: 2019
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