Publication detail

The role of strategic analysis in the determining the company's value using the income capitalization approach

KARAS, M. REŽŇÁKOVÁ, M.

Original Title

The role of strategic analysis in the determining the company's value using the income capitalization approach

Type

conference paper

Language

English

Original Abstract

Determining the company value in the conditions of unstable development is a very difficult, almost sophisticated activity. Experience of authors confirms high sensitivity of the resulting company value in relation to critical input parameters, which are known as value drivers. One of these drivers, in case of determining the company value using the income capitalization approach, is the expected sales. In practice some authors, but mainly experts, limit sales forecast to extrapolation of the identified trend of the past development, while neglecting the importance of the strategic analysis. The aim of the strategic analysis is to identify all factors that may influence future company objectives, i.e. also future sales. This article provides a possible approach to the correction of sales forecast based on the information gained from the strategic analysis.

Keywords

strategic analysis, business valuation, sales forecast process

Authors

KARAS, M.; REŽŇÁKOVÁ, M.

RIV year

2011

Released

13. 5. 2011

Location

Toruń, Polsko

ISBN

978-83-62049-08-0

Book

Contemporary Issues in Economy: After the crisis?

Pages from

960

Pages to

972

Pages count

13

BibTex

@inproceedings{BUT36816,
  author="Michal {Karas} and Mária {Režňáková}",
  title="The role of strategic analysis in the determining the company's value using the income capitalization approach",
  booktitle="Contemporary Issues in Economy: After the crisis?",
  year="2011",
  pages="960--972",
  address="Toruń, Polsko",
  isbn="978-83-62049-08-0"
}