Business Valuation: A Case of AVG

Marek Moravec

Master's thesis

Abstract:

The aim of the Master's thesis is to assess the value of AVG to February 1st 2013. The searched value is the value for a potential investor. In order to estimate the value of AVG, the thesis applies two models -- intrinsic and relative. Explicitly, the thesis uses the two discounted cash flow approaches -- the weighted average Cost of Capital method (WACC) and the Adjusted Present Value method (APV). For the purpose of the relative valuation the multiples method is exercised. Finally, the gist of the thesis is the study of risks and benefits of the applied valuation methods in regard to the young high growth company in the Internet industry.

Abstract:

The aim of the Master's thesis is to assess the value of AVG to February 1st 2013. The searched value is the value for a potential investor. In order to estimate the value of AVG, the thesis applies two models -- intrinsic and relative. Explicitly, the thesis uses the two discounted cash flow approaches -- the weighted average Cost of Capital method (WACC) and the Adjusted Present Value method (APV). For the purpose of the relative valuation the multiples method is exercised. Finally, the gist of the thesis is the study of risks and benefits of the applied valuation methods in regard to the young high growth company in the Internet industry.

Keywords

Growth, Valuation, WACC, Internet, Multiples, APV

Keywords

Internet, Multiples, Growth, Valuation, WACC, APV

Language used: English

Date on which the thesis was submitted / produced: 26. 2. 2013

Thesis defence

• Date of defence: 13. 9. 2013
• Supervisor: Jiří Hnilica
• Reader: Martin Brabec

Vysoká škola ekonomická v Praze

Master programme / field:
Ekonomika a management / International Management