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THE IMPROVEMENT OF THE TECHNIQUE OF ASSESSING THE INVESTMENT VALUE OF A COMPANY

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Author(s): O. Kotysh

Journal: Economics of Development
ISSN 1683-1942

Volume: 66;
Issue: 2;
Start page: 114;
Date: 2013;
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Keywords: company’s investment value | the investor | the recipient | the coefficient of importance | cash flow discounting | net assets | a comprehensive index

ABSTRACT
Operation of domestic enterprises, the development of which is influenced by the effects of the global financial crisis requires immediate management solution of the problems associated with attracting additional capital. This process is quite risky both for the part of foreign investors and for the recipient; all this requires the development of new approaches in order to study the feasibility of investing in the development of Ukrainian enterprises.The purpose of this work is to improve the methodology for assessing the investment value of domestic enterprises.To achieve this goal it is necessary to solve the following tasks: 1) to analyze and clarify the essence of IVE, 2) to propose a conceptual diagram of the IVE evaluation process, 3) to improve the methodology for evaluating IPP.The subject of the study is the approaches and methods for assessing the investment value of domestic enterprises. The following methods were used: the method of theoretical generalization, the dialectical method of scientific knowledge and systematic approach, statistical methods and feasibility analysis.The investment value of an enterprise is considered, on the one hand, as a subjective category, which is based on the particular investor’s perceptions about the value of the object for a certain date in a specific market, and on the other hand – as an objective category, calculated on the basis of internal factors of its formation, that is the minimum level of value, which allows, in case of adverse conditions, to return the spent funds and cover the investment risks of the recipient.An improved method of estimating the IVE has been suggested, the main advantage of which is the integration of results of two methods, namely the method of net assets and discounted cash flows by the coefficient of importance. The calculation of this coefficient is based on the method proposed by the author of the article and takes into account the level of the internal factors of the company. The main feature of this improved method is the impact of external factors, the influence level of which is determined by the correction factor.
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