Determining the Value of the Enterprise Using Selected Valuation Methods

Oluseyi Gbenga Adu

Master's thesis

Stanovení hodnoty podniku pomocí vybraných metod oceňování

Abstract:

In the practical segment, AGD Company is profiled comprehensively, including its history, organizational structure, and competitor analysis. Strategic and financial analyses are conducted, leading to the identification of financial goals and formulation of management strategies tailored to guide AGD Print's trajectory. Finally, the valuation of AGD Print is carried out using three methodologies: DCF Entity, DCF Equity, and DCF APV, with DCF APV considered the most suitable due to its consideration of financing decisions' impact on the company's value. The summary encapsulates the holistic evaluation of AGD Print's intrinsic worth and future prospects through these methodologies.

Abstract:

The theoretical section of this work begins by emphasizing the pivotal role of value and business valuation in finance and decision-making contexts, extending beyond mergers and acquisitions to encompass taxation, legal proceedings, and various other scenarios. Key principles such as fair market value and different valuation approaches are outlined, alongside a discussion of contemporary trends like the integration of environmental, social, and governance factors and the rising importance of intangible asset valuation. The theoretical discourse then transitions into a pragmatic exploration of the business valuation process, covering strategic analysis, financial planning, and different valuation methods. In the practical segment, AGD Company is profiled comprehensively, including its history, organizational structure, and competitor analysis. Strategic and financial analyses are conducted, leading to the identification of financial goals and formulation of management strategies tailored to guide AGD Print's trajectory. Finally, the valuation of AGD Print is carried out using three methodologies: DCF Entity, DCF Equity, and DCF APV, with DCF APV considered the most suitable due to its consideration of financing decisions' impact on the company's value. The summary encapsulates the holistic evaluation of AGD Print's intrinsic worth and future prospects through these methodologies.

Keywords

Valuation, Discounted Cash Flow Method, Strategic Analysis, Financial Analysis, Financial Plan

Language used: English

Date on which the thesis was submitted / produced: 18. 4. 2024

Thesis defence

Tomas Bata University in Zlín

Faculty of Management and Economics

Master programme / field:
Finance / Financial Markets and Technologies