17th Annual Student Research Conference
Business & Accountancy
A Comparative Study of Corporate Valuation Methods
Imran Jamal
Dr. Jason Lin, Faculty Mentor
Valuation is an integral part of the strategic planning process. Valuation is vital when evaluating new investment opportunities, developing alternative corporate strategies, establishing benchmarks for compensation plans, determining the maximum purchase price or minimum selling price for an asset, for court proceedings and appraisals, and for evaluating investments and securities for personal portfolios. There are a variety of valuation approaches – multiples, discounted cash flow, income, cost, market, and sum of assets. Corporate valuation is also essential in a broad spectrum of industry sectors and in different facets of a business – foreign subsidiaries, multinationals, banks, etc. Each of the approaches mentioned above have their shortcomings but with proper knowledge of the variables involved, and the knowledge of common errors encountered in the implementation of the approaches, an analyst can provide relevant, accurate and guiding information to creditors, investors, and others affected by the company’s financials.
Keywords: corporate valuation, discounted cash flow, financial multiples
Topic(s):Business Administration
Presentation Type: Oral Paper
Session: 27-2
Location: OP 2113
Time: 2:30