Oceňování 2019, 12(3):18-33 | DOI: 10.18267/j.ocenovani.233
Market value of a business and discount rate focusing on the capital market risk premium - part 2
- 1 Prof. Ing. Miloš Mařík, CSc., Katedra financí a oceňování podniku VŠE Praha, ředitel Institutu oceňování majetku VŠE Praha
- 2 Doc. Ing. Pavla Maříková, CSc., Katedra financí a oceňování podniku VŠE Praha
In the first part of the article models for ex-ante market risk premium estimation based on dividends and free cash flow were analyzed. The aim of this second part is to introduce and analyze models based on residual profits, evaluate various models and submit recommendations for the Czech Republic's conditions. The use of the residual profit model is also illustrated by a model example and empirical data obtained by these models are presented. The article concludes that models based on residual profits are more suitable for practical use in Central European conditions than models based on dividends, FCFE or earnings. Residual profits require input data that is relatively easy to obtain while being economically equivalent to free cash flow models. We recommend especially the Claus - Thomas model, which works with long - term growth.
Keywords: Value; Business valuation; Market value; Cost of equity; Ex-ante market risk premium; Implied risk premium
Grants and funding:
Článek je zpracován jako jeden z výstupů výzkumného projektu Fakulty financí a účetnictví VŠE Praha, který je realizován v rámci institucionální podpory VŠE IP100040
JEL classification: G32
Published: December 20, 2019 Show citation
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