Estimation of capital structure for the purposes of market valuation of a company in the conditions of the Czech Republic - Part 2

Odhad kapitálové struktury pro účely tržního oceňování podniku v podmínkách ČR - 2. část

Pavla Maříková and Andrej Tóth

Oceňování, 2021, vol. 14, issue 3, 37-69

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 second part of the article focused on three sectors: manufacture of machinery, manufacture of pharmaceutical products and construction. The capital structure of companies in the Czech Republic, Poland, Germany, France and the United Kingdom was examined.The analysis shows that in European countries, non-traded companies are significantly less indebted than traded companies. Taking over the indebtedness of foreign traded companies for the valuation of non-traded Czech companies is thus completely inappropriate. When valuing traded companies, it is possible to take foreign data into account, but only with caution, because the amount of indebtedness varies considerably in different European countries and even within one country there is a large variance of debt values between individual companies.

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
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ocenovani.vse.cz/doi/10.18267/j.ocenovani.265.html (text/html)
http://ocenovani.vse.cz/doi/10.18267/j.ocenovani.265.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnloce:v:14:y:2021:i:3:id:2021_3_03:p:37-69

Ordering information: This journal article can be ordered from
Editorial office Ocenovani, Prague University of Economics and Business, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic
http://ocenovani.vse.cz

DOI: 10.18267/j.ocenovani.265

Access Statistics for this article

Oceňování is currently edited by Časopis Oceňování

More articles in Oceňování from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().