Theory and methodology of assessing the market value of economic entities

Abstract

The need that arises in the course of conducting financial and economic activities to assess the market value of an economic entity, during which the value of its real estate, as well as movable property, can also be assessed, is a given moment of such activity. This is due to the fact that through such an assessment various problem of a property nature can be solved. At the same time, these tasks are most often quite important both for the organization itself and for its counterparties.
It is worthwhile to separately highlight the main procedures in accordance with which the purchase and sale of both the company itself as a whole and its individual elements is carried out. Also, such problems can be solved in order to justify as efficiently as possible the amounts that may be requested, for example, by a bank, when issuing a loan secured by the property being valued. Also, the data obtained during such an assessment can be used to find and justify the need to carry out operations within, for example, an additional issue of shares, to calculate the amount of future and present tax payments, etc.
In the course of this article, an analysis was carried out of the main methods by which business valuation is carried out. Such an analysis is necessary, since in the course of business valuation various problems arise related to the inaccurate definition of the concept of assessing market value, as well as the not always correct use of the methods used in making such an assessment.