Direct Comparison Method in Valuating a Non-listed Romanian Company

Ioan Bircea ()
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Ioan Bircea: Universitatea "Petru Maior" din Tirgu-Mures, Str. Nicolae Iorga nr.1, Tirgu-Mures, Mures, 540088, Romania

Acta Marisiensis. Series Oeconomica, 2013, vol. 1, 45-65

Abstract: As with any transaction conducted on a market the economic value of a property is assessed by comparing it with the price of some identical or similar goods, recently traded on this market or any other market. This rule is also applied in the case of shares or social shares. Direct comparison method involves determining the value of the shares or the social shares of a company by comparing them with shares traded on the market of some similar and relevant companies. A prudent buyer not offers a higher price than the price of a similar traded asset.

Keywords: Direct comparison; Equity; Multiplier; Risk. (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2013
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