Volatility Coefficient (v) for Unlisted Companies

Ioan Bircea and Rodica Baciu

The Valuation Journal, 2017, vol. 12, issue 1, 94-121

Abstract: For unlisted companies, the lack of information on the market price of shares or debts make it more difficult to calculate the volatility coefficient. As with any investment in financial securities, investing in unlisted companies is subject to market risk and specific risk. The return and implicitly the risk to which financial securities are subject are influenced by both internal and external factors. The volatility coefficient calculation in this case involves either methods based on comparisons with the volatility coefficients of listed companies (bottom-up method) or by methods based on linear or multiple regression. The purpose of this study is to present these methods and also to highlight that a pertinent estimation of the risk to which the shares or equity shares of unlisted companies are subject involves a corroboration of these methods. In this study the theory was expanded through a practical case regarding the calculation of the volatility coefficient of an unlisted company from the pharmaceutical.

JEL-codes: R33 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:vaj:journl:v:12:y:2017:i:1:p:94-121

Access Statistics for this article

The Valuation Journal is currently edited by Ion Anghel

More articles in The Valuation Journal from The National Association of Authorized Romanian Valuers Contact information at EDIRC.
Bibliographic data for series maintained by Stefan Alexandru ().