Publicação
About business valuation - book value vs. market value
| Resumo: | This paper aims to develop a method that allows the evaluation of companies, according to the respective sector of activity, in a simple and fast way, comparing the value obtained through the application of the Market Value Added method with multiple Price to Sales. To obtain a fair value that reflects the expected returns based on forecast there are several methods. Each method follows its own assumptions and methodologies, with the purpose of finding the value of the company. One of widely used methods is the Market Value Added method, or MVA method, that belongs to the group of methods based on cash flows. This method consists of the current value of all future Economic Value Added (EVA). EVA is the difference between the value of the company and the total capital invested. Another method widely used is the method of multiples, which is part of the group of methods based on patrimonial approach. Each multiple has a numerator and a denominator, where the numerator can be the book value or the market value, such as the market price. On the other hand, the denominator may be a measure of equity, such as the book value of equity, or an enterprise value measure, such as operating or sales revenues. In the present paper is intended to create the multiple of price to sales for the companies of the sector of activity CAE 01 - Agriculture, animal production, hunting and related service activities, using the results obtained by the method MVA, as market price, taking into account the last 5 years of activity of the sector. Based on the obtained value, the multiple PS is determined for the activity sector. In this way, the value of a company, with this economic activity, can be determined by the multiplication of its sales by the multiple PS. |
|---|---|
| Autores principais: | Monte, Ana Paula |
| Outros Autores: | Fernandes, António B.; Carvalho, Juliana Filipa Teixeira |
| Assunto: | Business valuation Market value Book value Market value added method |
| Ano: | 2019 |
| País: | Portugal |
| Tipo de documento: | comunicação em conferência |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Instituto Politécnico de Bragança |
| Idioma: | inglês |
| Origem: | Biblioteca Digital do IPB |
| _version_ | 1867172730239975424 |
|---|---|
| author | Monte, Ana Paula |
| author2 | Fernandes, António B. Carvalho, Juliana Filipa Teixeira |
| author2_role | author author |
| author_facet | Monte, Ana Paula Fernandes, António B. Carvalho, Juliana Filipa Teixeira |
| author_role | author |
| contributor_name_str_mv | Biblioteca Digital do IPB |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"Monte, Ana Paula\",\"Person.identifier.orcid\":\"0000-0001-9936-0142\"},{\"Person.name\":\"Fernandes, António B.\",\"Person.identifier.orcid\":\"0000-0002-6526-9903\"},{\"Person.name\":\"Carvalho, Juliana Filipa Teixeira\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Biblioteca Digital do IPB |
| datacite.creators.creator.creatorName.fl_str_mv | Monte, Ana Paula Fernandes, António B. Carvalho, Juliana Filipa Teixeira |
| datacite.date.Accepted.fl_str_mv | 2019-01-01T00:00:00Z |
| datacite.date.available.fl_str_mv | 2020-04-06T10:47:09Z |
| datacite.date.embargoed.fl_str_mv | 2020-04-06T10:47:09Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Business valuation Market value Book value Market value added method |
| datacite.titles.title.fl_str_mv | About business valuation - book value vs. market value |
| dc.contributor.none.fl_str_mv | Biblioteca Digital do IPB |
| dc.creator.none.fl_str_mv | Monte, Ana Paula Fernandes, António B. Carvalho, Juliana Filipa Teixeira |
| dc.date.Accepted.fl_str_mv | 2019-01-01T00:00:00Z |
| dc.date.available.fl_str_mv | 2020-04-06T10:47:09Z |
| dc.date.embargoed.fl_str_mv | 2020-04-06T10:47:09Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | http://hdl.handle.net/10198/21546 |
| dc.language.none.fl_str_mv | eng |
| dc.rights.cclincense.fl_str_mv | http://creativecommons.org/licenses/by/4.0/ |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.subject.none.fl_str_mv | Business valuation Market value Book value Market value added method |
| dc.title.fl_str_mv | About business valuation - book value vs. market value |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_5794 |
| description | This paper aims to develop a method that allows the evaluation of companies, according to the respective sector of activity, in a simple and fast way, comparing the value obtained through the application of the Market Value Added method with multiple Price to Sales. To obtain a fair value that reflects the expected returns based on forecast there are several methods. Each method follows its own assumptions and methodologies, with the purpose of finding the value of the company. One of widely used methods is the Market Value Added method, or MVA method, that belongs to the group of methods based on cash flows. This method consists of the current value of all future Economic Value Added (EVA). EVA is the difference between the value of the company and the total capital invested. Another method widely used is the method of multiples, which is part of the group of methods based on patrimonial approach. Each multiple has a numerator and a denominator, where the numerator can be the book value or the market value, such as the market price. On the other hand, the denominator may be a measure of equity, such as the book value of equity, or an enterprise value measure, such as operating or sales revenues. In the present paper is intended to create the multiple of price to sales for the companies of the sector of activity CAE 01 - Agriculture, animal production, hunting and related service activities, using the results obtained by the method MVA, as market price, taking into account the last 5 years of activity of the sector. Based on the obtained value, the multiple PS is determined for the activity sector. In this way, the value of a company, with this economic activity, can be determined by the multiplication of its sales by the multiple PS. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | conferencePaper |
| fulltext.url.fl_str_mv | https://bibliotecadigital.ipb.pt/bitstreams/faaf9368-2d0b-4471-9359-58cbe4148881/download |
| id | ipb_ca39541c5b3e6bdcf8a3d4ec209c846d |
| identifier.url.fl_str_mv | http://hdl.handle.net/10198/21546 |
| instacron_str | ipb |
| institution | Instituto Politécnico de Bragança |
| instname_str | Instituto Politécnico de Bragança |
| language | eng |
| network_acronym_str | ipb |
| network_name_str | Biblioteca Digital do IPB |
| oai_identifier_str | oai:bibliotecadigital.ipb.pt:10198/21546 |
| organization_str_mv | urn:organizationAcronym:ipb |
| person_str_mv | Monte, Ana Paula Monte, Ana Paula https://www.ciencia-id.pt/531F-8D14-F89E 531F-8D14-F89E http://orcid.org/0000-0001-9936-0142 0000-0001-9936-0142 Fernandes, António B. Fernandes, António B. https://www.ciencia-id.pt/9215-EC79-BC43 9215-EC79-BC43 http://orcid.org/0000-0002-6526-9903 0000-0002-6526-9903 Carvalho, Juliana Filipa Teixeira Carvalho, Juliana Filipa Teixeira https://www.ciencia-id.pt/7C1A-9F6C-285A 7C1A-9F6C-285A |
| publishDate | 2019 |
| reponame_str | Biblioteca Digital do IPB |
| repository_id_str | urn:repositoryAcronym:ipb |
| service_str_mv | urn:repositoryAcronym:ipb |
| spelling | engpt_PTThis paper aims to develop a method that allows the evaluation of companies, according to the respective sector of activity, in a simple and fast way, comparing the value obtained through the application of the Market Value Added method with multiple Price to Sales. To obtain a fair value that reflects the expected returns based on forecast there are several methods. Each method follows its own assumptions and methodologies, with the purpose of finding the value of the company. One of widely used methods is the Market Value Added method, or MVA method, that belongs to the group of methods based on cash flows. This method consists of the current value of all future Economic Value Added (EVA). EVA is the difference between the value of the company and the total capital invested. Another method widely used is the method of multiples, which is part of the group of methods based on patrimonial approach. Each multiple has a numerator and a denominator, where the numerator can be the book value or the market value, such as the market price. On the other hand, the denominator may be a measure of equity, such as the book value of equity, or an enterprise value measure, such as operating or sales revenues. In the present paper is intended to create the multiple of price to sales for the companies of the sector of activity CAE 01 - Agriculture, animal production, hunting and related service activities, using the results obtained by the method MVA, as market price, taking into account the last 5 years of activity of the sector. Based on the obtained value, the multiple PS is determined for the activity sector. In this way, the value of a company, with this economic activity, can be determined by the multiplication of its sales by the multiple PS.application/pdfpt_PTAbout business valuation - book value vs. market valuePersonalMonte, Ana PaulaDSpacehttp://dspace.org/items/1ac2a8f5-4d37-4913-bd74-e6a0a7206521DSpacehttp://dspace.org/items/1ac2a8f5-4d37-4913-bd74-e6a0a7206521MonteAna PaulaCiência IDhttps://www.ciencia-id.pt531F-8D14-F89EORCIDhttp://orcid.org0000-0001-9936-0142Researcher IDhttps://www.researcherid.comF-7469-2012Researcher IDhttps://www.researcherid.comF-7469-2012Scopus Author IDhttps://www.scopus.com57202852398Scopus Author IDhttps://www.scopus.com57200860555Scopus Author IDhttps://www.scopus.com57213633836PersonalFernandes, António B.DSpacehttp://dspace.org/items/160f067d-4cd4-4e53-ae68-4476ede43da1DSpacehttp://dspace.org/items/160f067d-4cd4-4e53-ae68-4476ede43da1FernandesAntónio B.Ciência IDhttps://www.ciencia-id.pt9215-EC79-BC43ORCIDhttp://orcid.org0000-0002-6526-9903Scopus Author IDhttps://www.scopus.com57207923346PersonalCarvalho, Juliana Filipa TeixeiraDSpacehttp://dspace.org/items/6c3ebf3c-e2df-4f99-af63-970e19b065f8DSpacehttp://dspace.org/items/6c3ebf3c-e2df-4f99-af63-970e19b065f8CarvalhoJuliana Filipa TeixeiraCiência IDhttps://www.ciencia-id.pt7C1A-9F6C-285AHostingInstitutionOrganizationalBiblioteca Digital do IPBe-mailmailto:dspace@ipb.ptdspace@ipb.pt2020-04-06T10:47:09Z20192019-01-01T00:00:00ZHandlehttp://hdl.handle.net/10198/21546http://purl.org/coar/access_right/c_abf2open accessBusiness valuationMarket valueBook valueMarket value added method3000959 bytesother research producthttp://purl.org/coar/resource_type/c_5794conference paper2019http://creativecommons.org/licenses/by/4.0/http://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://bibliotecadigital.ipb.pt/bitstreams/faaf9368-2d0b-4471-9359-58cbe4148881/downloadXX Congreso Internacional AECAMálaga |
| spellingShingle | About business valuation - book value vs. market value Monte, Ana Paula Business valuation Market value Book value Market value added method |
| status | SINGLETON |
| subject.fl_str_mv | Business valuation Market value Book value Market value added method |
| title | About business valuation - book value vs. market value |
| title_full | About business valuation - book value vs. market value |
| title_fullStr | About business valuation - book value vs. market value |
| title_full_unstemmed | About business valuation - book value vs. market value |
| title_short | About business valuation - book value vs. market value |
| title_sort | About business valuation - book value vs. market value |
| topic | Business valuation Market value Book value Market value added method |
| topic_facet | Business valuation Market value Book value Market value added method |
| url | http://hdl.handle.net/10198/21546 |
| visible | 1 |