DIRECT COMPARISON METHOD IN VALUATING A NONLISTED ROMANIAN COMPANY Cover Image

METODA COMPARAŢIEI DIRECTE, ÎN EVALUAREA UNEI ÎNTREPRINDERII NECOTATE DIN ROMANIA
DIRECT COMPARISON METHOD IN VALUATING A NONLISTED ROMANIAN COMPANY

Author(s): Ioan Bircea
Subject(s): Business Economy / Management, Methodology and research technology, Evaluation research
Published by: Editura University Press Targu Mures
Keywords: Direct comparison; Equity; Multiplier; Risk;

Summary/Abstract: As with any transaction conducted on a market the economic value of a property is assessed by comparing it with the price of some identical or similar goods, recently traded on this market or any other market. This rule is also applied in the case of shares or social shares. Direct comparison method involves determining the value of the shares or the social shares of a company by comparing them with shares traded on the market of some similar and relevant companies. A prudent buyer not offers a higher price than the price of a similar traded asset.

  • Issue Year: 7/2013
  • Issue No: 7
  • Page Range: 45-65
  • Page Count: 21
  • Language: English, Romanian