The Concept of Evaluation of Cluster Development Strategic Outlooks with the Use of Multiples
The Concept of Evaluation of Cluster Development Strategic Outlooks with the Use of Multiples
Author(s): Viktor Kuznetsov, Anastasiya EGOROVA, Sergey N. Yashin, Egor KOSHELEV, Ekaterina P. GarinaSubject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: Reprograph
Keywords: cluster; cluster core; book value of the multiplier; multiplier of revenue; company's brand value;
Summary/Abstract: This paper suggests an approach making it possible to recognize a core company of a future innovational and industrial cluster in order to subsequently expand this type of business up to a pilot cluster of the region. For that end, it is proposed to use book value multiples, Tobin’s Q multiple and revenue multiples. They allow determining whether the company in question will be able to become a core of a potential cluster in the very near future. The multiples can also help verify whether a large company meets its current position of the ‘cluster core’. With this end in view, its book value multiple is compared with the profitability spread, and the revenue multiples are compared with the profit margin.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XII/2017
- Issue No: 49
- Page Range: 782-788
- Page Count: 7
- Language: English