The purpose of this thesis is to look at how the two widely used valuation approaches Free Cash Flow to Firm and Relative valuation can contribute to the explanation of market prices of shares. The study also aims to investigate if it is possible to find any significant differences between industries, while using the two valuation methods. There are a large number of models that are used to value assets and corporations, which have been used for a long time in the banking sector and similar contexts. It is widely known that a single valuation method or model which could predict a future stock price is hard to find or might even not exist. The study uses a quantitative method, in which we evaluated 36 Swedish companies, to be able to draw conclusions about the two valuation approaches. Our results suggest that the calculated prices obtained from the two methods correlate with the market price of the share, and that the result differ between different industries.

Background: In an inefficient market, the intrinsic value of an asset may not be equal to its true market value. Therefore, before engaging in a stock transaction, both the seller and the buyer would want to know the intrinsic value of the stock as neither would want to lose money during the process. An effective valuation model enabling investors to efficiently determine firm values is therefore considered to be a crucial factor. Purpose: The purpose of this thesis is to analyze the free cash flow to equity (FCFE) approach and the dividend discount model (DDM) on 30 Swedish companies. This to conclude if they are considered to be accurate valuation models and to determine if one of the methods gives a more accurate estimation of the companies’ share prices than the other. Additionally, the report will examine if one model is preferred for a specific sector and if a payout ratio exists where the DDM generates a particularly realistic valuation. Method: A database will be produced to estimate share prices for each company using both the FCFE approach and the DDM over five consecutive years. The accuracy of the models will be evaluated by dividing the projected share prices with their corresponding actual stock prices to calculate the percentage deviations. The smaller the percentage deviation, the more accurate is the estimated share price considered to be. Conclusion: It is evident from the findings of this thesis that the FCFE approach and the DDM produce accurate valuations for Swedish companies. It is difficult to determine that one is preferred over the other altogether, instead the FCFE approach is preferred in some cases and the DDM in others. This depends on the companies’ actual stock prices, which industry the companies operate in and the amount the companies are assumed to pay out as dividends.

by Victor Fu Sze Wai. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1989. / Bibliography: leaf 39.

Made available in DSpace on 2016-04-25T18:40:06Z (GMT). No. of bitstreams: 1 Eduardo Cezar de Oliveira.pdf: 4404274 bytes, checksum: b53789743e9726be54b191c81fcdbf39 (MD5) Previous issue date: 2015-06-10 / This paper aims to present the various methods used to conduct the evaluation of the companies and carry out a comparison of the market value of the it companies that have shares in BMF Bovespa & with the present value of the cash flow calculated using the information from the financial annual reports had two stages. First, an exploratory study was conducted through literature search and on second, there was a market research using the main methodology: the present value of the discounted cash flow. For the calculations, has selected 10 information technology companies that have shares in BMF & Bovespa and performed the comparison between the present value of the discounted cash flow with their market value, which presented evidence that Brazilian investors still have insecurity in buying these papers compared the behavior of North American investors about North Americans companies / Este trabalho tem como objetivo apresentar os diversos métodos utilizados para realizar a avaliação das empresas e realizar uma comparação do valor de mercado que as empresas de TI que possuem ações na BMF & Bovespa com o valor presente do fluxo de caixa calculado utilizando as informações dos relatórios financeiros. A coleta de informações teve duas etapas. Na primeira, realizou-se um estudo exploratório através da pesquisa bibliográfica e na segunda, realizou-se uma pesquisa mercadológica utilizando a principal metodologia: o valor presente do fluxo de caixa descontado. Para os cálculos, foi selecionado 10 empresas de Tecnologia da Informação que possuem ações na BMF & Bovespa e realizado a comparação entre o valor presente do fluxo de caixa descontado com seu valor de mercado, o que apresentou indícios que os investidores brasileiros ainda apresentam insegurança na compra destes papeis se comparados ao comportamento dos investidores norte americanos em relação as empresas norte americanas

Submitted by Sara Ribeiro (sara.ribeiro@ucb.br) on 2018-09-17T14:57:23Z No. of bitstreams: 1 HamiltonBrunoDissertacao2018.pdf: 3908365 bytes, checksum: 9e0df17bd246aecffba4df5794e8a7ac (MD5) / Approved for entry into archive by Sara Ribeiro (sara.ribeiro@ucb.br) on 2018-09-17T14:58:10Z (GMT) No. of bitstreams: 1 HamiltonBrunoDissertacao2018.pdf: 3908365 bytes, checksum: 9e0df17bd246aecffba4df5794e8a7ac (MD5) / Made available in DSpace on 2018-09-17T14:58:10Z (GMT). No. of bitstreams: 1 HamiltonBrunoDissertacao2018.pdf: 3908365 bytes, checksum: 9e0df17bd246aecffba4df5794e8a7ac (MD5) Previous issue date: 2018-07-09 / The process of determining the worth of a company (valuation) aims to calculate the fair value using several methodologies. Considering that, the value of a company is a result of its potential production; valuation methods should measure the capability to generate future benefits from the company's assets, which may be tangible (machinery, stock, etc.) and intangible (brands, the quality of its administration, strategy, etc.). Intangible assets, besides being more difficult to measure, are fundamental to the organization, contributing to the company's value. Several methods have been identified, making more difficult to choose the method to be used. Thus, the present study sought to analyze the main valuation methods and their applications, both those traditionally used and those that used for intangible assets. It was also observed if the governance of the company and involvement in fraud and corruption are considered during the evaluation. The identification of the practices of using which evaluation methods are most appropriate to each type of organization was elaborated from the data collection through the application of a structured questionnaire with professionals of the area and the evaluation of the results by a discussion group composed by specialists. The research findings can contribute to the choice of methods for evaluating companies, depending on their segment, size and concentration of assets: tangible and intangible. The results of this work demonstrate that, despite the existence of several methods of valuation of companies and intangible, the cash flow discounted method is the most used, but can also be complemented by other methods. / O processo de avaliação de uma empresa (valuation) tem como objetivo calcular o valor justo (fair value), sendo que esse cálculo pode ser realizado mediante a utilização de diversas metodologias. Considerando que o valor de uma empresa é representado pelo o que poderá produzir, os métodos de avaliação devem, em princípio, mensurar a capacidade de geração de benefícios futuros, originados dos ativos da empresa, que podem estar sob a forma de ativos tangíveis (imóveis, máquinas, estoques, etc.) e intangíveis (marcas, a qualidade de sua administração, sua estratégia, etc.). Os ativos intangíveis além de apresentarem maior dificuldade de serem mensurados, possuem importância fundamental na medida em que seu adequado gerenciamento gera vantagens competitivas à organização, contribuindo para a alavancagem do valor da empresa. Foram identificados diversos métodos, o que dificulta a escolha do procedimento a ser empregado. Assim, o presente estudo buscou verificar a aplicação dos principais métodos de avaliação, tanto os tradicionalmente utilizados, como os que tratam de avalição dos ativos intangíveis. Procurou-se observar se a governança da empresa e envolvimento em fraudes e corrupção são consideradas quando da avaliação. A identificação das práticas de utilização de quais métodos de avaliação são mais adequados a cada tipo de organização foi elaborado a partir da coleta de dados mediante a aplicação de um questionário estruturado com profissionais da área e da avaliação dos resultados por um grupo de discussão composto por especialistas. Os achados da pesquisa podem contribuir para a escolha de métodos para avaliações de empresas, em função do seu segmento, porte e concentração de ativos: tangíveis e intangíveis. Os resultados deste trabalho demonstram que, apesar da existência de diversos métodos de avaliação de empresas e de intangíveis, o método do fluxo de caixa descontado é o de maior utilização, podendo, porém, ser complementado por outros métodos.

The content of this work is the analysis of expert opinions on the valuation of the business or its parts in several respects. In the introduction it is mentioned adjustment of valuation by Czech methodology ZNAL, International Valuation Standards IVS and European Valuation Standards EVS. Furthermore, it is carried out the comparison of these methodologies, including the German Standard IDW S1, according to some criteria. The analytical section is dedicated to the analysis of expert opinions, to assess their level of processing, and to point out some weaknesses or strengths. The conclusion is a quantitative summary of the results of analysis of expertise, as well as pointing out the most common shortcomings and proposals for their elimination.

The aim of the thesis is valuation of the domain name heureka.cz on the date 1.7.2010. The thesis consists of strategic analysis, financial analysis, analysis and prognosis of generators of value and financial plan. The value of the domain name is determined by the excess earnings method and as additional method is used residual method based on DCF equity and market coparison.

The first part of this diploma thesis focuses on theoretical basis, which means definitions of basic terms related to real estates and valuation, cadastre of real estates, definitions of price and value, activity of valuers and real estate experts and two approaches to valuation, so called administrative and market valuation. The practical part begins with the apartment market analysis in the Czech republic in 2010 followed by the valuation of apartment. For the possibility of further comparison, both administrative and market valuation were used.

<p>In much of the recent times the practitioner’s fraternity has been focused towards making investment decisions, based on traditional financial evaluation techniques ranging from Net present Value (NPV), Internal Rate of Return (IRR), Pay Back Period, Profitability Index. Although these techniques have performed satisfactorily and have provided practitioners’ insights about how to value investments and thereby providing them a holistic view of the project and making informed decisions. However, these traditional techniques have focused more on quantifying the risk assessment done at the beginning of the project, by taking into consideration an optimal discount rate based on the firm’s overall cost of capital, and the additional risk associated with the given project. Nevertheless, these traditional Discounted Cash Flow (DCF) techniques, fails to take into account the value of managerial flexibility in business environments associated with a high degree of uncertainty, thereby not encapsulating the value of different options which are embedded within the project, that managers possess and the value of new information during the project lifecycle. In order to value these options, Real Options Valuation technique has been proposed, which predominantly traces its origin from valuing financial options. Though various academicians have supported this technique and the potential benefits it offers to organizations while making investment decisions, it still rests on a number of assumptions, which needs to be validated across different businesses. Therefore, this study focuses on understanding the obstacles involved with the implementation of Real Options Valuation technique, based on the three roadblocks identified by Lander and Pinches (1998).</p><p>A qualitative study using semi-structured interviews was conducted within a given case company X in Sweden. Wherein based on the existing financial evaluation technique that company X uses while making investment decisions are analyzed. Based on the responses provided by the company X officials, the study revealed that company X employs traditional financial evaluation techniques, since they are been widely accepted across a wide range of industries, and also decision makers, and shareholders tend to prefer a probabilistic risk assessment at the beginning of the project, however company X do acknowledge the potential benefits offered by Real Options Valuation technique, but they are not been implemented, because of its ignorance among the key decision makers, coupled with complex mathematical calculations and various assumptions that needs to be incorporated while using Real Options approach for valuing investments, which makes it difficult in the context of given company X for using Real Options approach for valuing investments.</p>

<p><strong>Background:</strong> The trademark is something that surrounds us almost all the time wherever we are. Studies show that brands are becoming increasingly more and more important and that it is important to have a strong trademark. This may be a reason for acquisitions. A business is carried out for various reasons, but usually it is to gain market shares or to get advantages in the market, such as a trademark can help with. A contributory effect on the market can be customer loyalty to the trademark. Previously, there have been articles written, studies done and conducted research on brand valuation. In these studies, it has been treated the way trademarks are managed in practice and the methods and models used for valuation of these trademarks. These studies will the authors to have as the basis of the data and on the basis of the reply to the standard problem.</p><p><strong>Problem Discussion:</strong> In business acquisitions, it is essential that there is a correct and fair valuation of the trademark as possible. According to experts in brand valuation, various models of trademark valuation result in different values for the same trademark. How can it be ensured that the value method on the trademark is something that is reliable? This question often pops up when neither the trademark valuation, or valuation situation is quite similar to the other. There are different definitions of a brand and the knowledge of those definitions is important to know then it comes to valuation of a trademark. This definition, as well as assumptions about the brand and the market, can have a significant impact on trademark valuation. Therefore it is essential that the valuation is carried out in a proper manner and do not display a misleading picture, which in turn can lead to economic difficulties in the future.</p><p><strong>Problem definition:</strong> From the background and discussion above, the following question can be asked: To what extent are the different valuation methods used for trademarks among those who valuate trademarks and companies? To answer the question above, the following four points are to be examined in the paper: 1) The most frequently used valuation method.</p><p>2) Advantages and disadvantages of the method. 3) Other methods that are more suitable.</p><p>4) How you see that the expected value of the trademark is accurate and reliable.</p><p><strong>Purpose:</strong> The aim of the paper is to provide a deeper insight in the use of valuation methods in valuation of trademarks. Moreover, the authors like to examine the difficulties and/or obstacles that may arise in the valuation, if possible.</p><p><strong>Method:</strong> The paper is based on the literature review previously carried out in the specified field. The methodology used is deductive. The data will be used based on four earlier studies in trademark valuation, and two interviews of knowledgeable people in the same field.</p><p><strong>Results:</strong> The points that were examined showed that the relief from royalty method is the most frequently used valuation method. However it is not flawless and the paper also mentions other methods appropriate for trademark valuation. Choice of method depends on the situation, but also on the information that is available. The advantage of the relief from royalty is that it is easy to use, sometimes as simple as it does not show a fair value of the trademark’s value. An example of a situation where the method does not suit particularly well is when a trademark has a short history. A cost-based method can be used instead because it does not count on future cash flows, but on the historical costs that are related to the trademark. There are other methods that might be more suitable but those require more resources, such as the market-based method. The problem with this method is if there is not enough data on previous transactions, the method does not give a fair value. To get the most accurate and reliable value as possible, complementary trademark valuation methods is recommended to be used. The most common combination is market-based method and cash flow-based method.</p><p><strong>Conclusion:</strong> The paper concludes that the relief from royalty method is mostly used. However, it has drawbacks and there are other methods to complement this. Overall, it has been found that there are some difficulties regarding to the valuation of trademarks. These problems are as following: How the trademark is defined, who is carrying out the valuation (assumptions/views on the market/company) and how available the relevant information is. To obtain a high reliability, the valuation should therefore be carried out in a thorough and comprehensive analysis of the situation for the company (both internally and on the market) and the market as a whole. This should be done to reduce the risk of future negative events. The methods have drawbacks, but together the methods are used to complement each other.</p> / <p><strong>Bakgrund:</strong> Varumärken är något som omger oss i stort sett hela tiden var vi än befinner oss. Undersökningar visar, att varumärken blir allt mer viktiga och att det då är av stor betydelse att ha ett starkt varumärke. Detta kan vara en anledning till företagsförvärv. Ett företagsförvärv utförs av olika anledningar, men oftast är det för att öka sina marknadsandelar eller för att få fördelar på marknaden, sådana som ett varumärke kan bidra med. En bidragande effekt på marknaden kan vara kunders lojalitet gentemot varumärket. Det har tidigare författats artiklar, studier och utförts forskning kring varumärkesvärdering. I de studierna har det behandlats hur varumärken hanteras i praktiken och de metoder och modeller som används för värdering av dessa varumärken. Dessa studier kommer författarna att ha som grund i empirin och utifrån den svara på den ställda problemformuleringen.</p><p><strong>Problemdiskussion:</strong> Vid företagsförvärv är det av stor vikt att det genomförs en korrekt och så rättvisande värdering av varumärket som möjligt. Enligt experter inom varumärkesvärdering kan olika värderingsmodeller resultera i olika värden för ett och samma varumärke. Hur kan det då säkerställas att det värde som metoden ger på varumärket är något som är tillförlitligt? Denna fråga dyker ofta upp, då varken varumärkesvärdering eller värderingssituation är sig helt lik den andra. Det finns olika definitioner på ett varumärke och dessa är det viktigt att ha kunskap om vid en varumärkesvärdering. Denna definition, samt antaganden om varumärket och marknaden, kan ha stor betydelse vid varumärkesvärderingen. Därför är det ytterst viktigt att värderingen genomförs på ett korrekt sätt och inte ger en missvisande bild, vilket i sin tur kan leda till ekonomiska svårigheter i framtiden.</p><p><strong>Problemformulering:</strong> Utav ovanstående bakgrund och diskussion kan följande fråga ställas:</p><p>I vilken utsträckning används de olika värderingsmetoderna för varumärken hos varumärkesvärderare och företag? För att svara på ovanstående fråga kommer följande fyra punkter att undersökas i uppsatsen: 1) Den mest frekvent använda värderingsmetoden.</p><p>2) Fördelar och nackdelar med metoden. 3) Andra värderingsmetoder som lämpar sig bättre.</p><p>4) Hur du ser till att det beräknade värdet på varumärket är rättvisande och tillförlitlig.</p><p><strong>Syfte:</strong> Syftet med uppsatsen är att ge en djupare inblick när det gäller användning av värderingsmetoderna vid varumärkesvärdering. Dessutom vill författarna, i den utsträckning det är möjligt, undersöka vilka svårigheter och/eller hinder som kan uppstå vid värderingen.</p><p><strong>Metod:</strong> Uppsatsen baseras på den litteraturstudie som tidigare genomförts inom området. Arbetsmetoden är deduktiv. De data som kommer att användas bygger på fyra tidigare studier inom varumärkesvärdering samt två intervjuer av sakkunniga personer inom samma område.</p><p><strong>Resultat:</strong> De punkter som undersöktes visade på att relief from royaltymetoden är den mest frekvent använda värderingsmetoden gällande varumärken. Den är dock inte felfri och det nämns även andra metoder som lämpliga vid varumärkesvärdering. Val av metod är beroende av situationen men även av tillgänglig information. Fördelen med relief from royalty är att den är enkel att använda, ibland så enkel att den inte ger ett rättvisande värde på varumärket. Ett exempel på situation där metoden inte lämpar sig speciellt bra är då ett varumärke har en kort historik. Istället kan kostnadsbaserad metod användas då den inte räknar på framtida kassaflöden utan på historiska kostnader som är relaterade till varumärket. Det finns andra metoder som lämpar sig bättre men de kräver mer resurser, exempelvis den marknadsbaserade metoden. Problemet med denna metod är om det inte finns tillräckligt med data om tidigare transaktioner, för att få fram ett rättvist värde. För att få ett så rättvisande och tillförlitligt värde som möjligt rekommenderas det att det vid värderingen används kompletterande metoder. Vanligast är kombinationen marknadsbaserad metod och kassaflödesbaserad metod.</p><p><strong>Slutsats:</strong> Uppsatsen kom fram till att relief from royaltymetoden används mest. Den har dock nackdelar och det finns andra metoder som kompletterar detta. Sammanfattningsvis har det påvisats en del svårigheter när det gäller värdering av varumärken. Dessa svårigheter är: Hur varumärket definieras, vem som värderar (antaganden/syn på marknaden/företaget) och hur stor tillgängligheten av relevant information är. För att få en hög tillförlitlighet bör det alltså genomföras en grundlig och omfattande analys av läget för företaget (både internt och på marknaden) och marknaden som helhet. Detta för att minska risken för framtida negativa händelser. Metoderna har brister, men tillsammans används de för att komplettera varandra.</p>