Business Valuation of O&H stavební hmoty s.r.o.

Bc. Ivan Bruthans

Master's thesis

Abstract:

The aim of my thesis is to compile an economic valuation of a real company, O & H stavební hmoty s.r.o., through appropriate valuation methods and to determine its most probable and achievable market value as of 31st December 2010. To start with, I introduce concepts of business valuation and then outline the essentials of various valuation approaches and techniques in the methodology part of my thesis. In the application part, I initially carry out strategic and financial analyses of the company, to assess and confirm the validity of the company’s “going concern” supposition. Based on these analyses, I elaborate projections of the company’s value drivers that will serve as bases for its valuation through suitable and applicable methods. I select the discounted Cash Flow technique in its DCF Equity variant as the main valuation method and a Book valuation of assets and a market Relative valuation on sector multiples as subsidiary valuation methods. Eventually, I benchmark the results obtained through those methods and verify as to whether my hypothesis was correct.

Keywords

Company valuation, Financial analysis, Value drivers, Discounted Cash Flow model

Language used: English

Date on which the thesis was submitted / produced: 25. 4. 2012

Thesis defence

• Date of defence: 27. 6. 2012
• Supervisor: doc. Ing. Jan Vlachý, Ph.D.
• Reader: doc. Ing. Irena Jindřichovská, CSc.

University of Finance and Administration

Master programme / field:
Economics and Management / Business Management and Corporate Finance