Estimation of capital structure for the purposes of market valuation of a company in the conditions of the Czech Republic - Part 1

Odhad kapitálové struktury pro účely tržního oceňování podniku v podmínkách ČR - 1. část

Pavla Maříková and Andrej Tóth

Oceňování, 2021, vol. 14, issue 2, 28-58

Abstract: The aim of the article is based on data from the Amadeus database to find out to what extent it is appropriate to take over the average indebtedness of companies on foreign capital markets for the valuation of companies operating in the Czech Republic, which are in most cases non-traded companies. The first part of the article focused on three sectors: paper production, chemical production and electricity production. The capital structure of companies in the Czech Republic, Poland, Germany, France and the United Kingdom was examined.The analysis shows that taking on the indebtedness of companies operating in foreign markets is not suitable for Czech companies, for two main reasons: 1) non-traded companies are significantly less indebted than traded companies, 2) market structures of foreign traded companies in the surveyed sectors are widely dispersed. and show no narrower range of normal values.

Keywords: market value; business valuation; capital cost; capital structure; discount rate; tržní hodnota; ocenění podniku; náklady kapitálu; kapitálová struktura; diskontní míra (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.18267/j.ocenovani.261

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