 Model of Assessing the Impact of Factors on Cash Flow MultiplicatorsN.N. Natocheeva, V.B. Frolova and T.V. Belyanchikova European Research Studies Journal, 2018, vol. XXI, issue Special 2, 338-347 Abstract: The article suggests one of the options for solving the problem of accounting for the impact of factors on the change in cash flow when investing or estimating the business valuation, including for the purposes of future M&A transactions. The authors economically justified the multiplier of backing the stocks by the amount of sale proceeds used as an indicator that most efficiently describes the financial state of the issuer. The article proposes a model of assessing the impact of factors that allows an investor to define the degree of impact of cash flow multipliers on the change in the multiplier of the stock market price to revenue. Depending on the growth or fall in the value of multiplier of the stock market price to revenue, the investor can forecast future free cash flow or financial losses, which will allow them to make an economically justified decision to invest in stocks of a particular issuer. The article presents a case of using the developed model of the factors impact. Keywords: Factor model; multiplier; capitalization; cash flow; business valuation; business profits; revenue; profitability; dividend; owner’s wealth; investment. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xxi:y:2018:i:special2:p:338-347 Access Statistics for this article More articles in European Research Studies Journal from European Research Studies Journal |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.