Oceňování 2021, 14(3):37-69 | DOI: 10.18267/j.ocenovani.265

Estimation of capital structure for the purposes of market valuation of a company in the conditions of the Czech Republic - Part 2

Pavla Maříková¹, Andrej Tóth²

¹ Doc. Ing. Pavla Maříková, CSc., Katedra financí a oceňování podniku VŠE Praha

² Ing. Andrej Tóth, absolvent Fakulty financí a účetnictví VŠE Praha, obor Finance a oceňování podniku

The aim of the article is based on data from the Amadeus database to find out to what extent it is appropriate to take over the average indebtedness of companies on foreign capital markets for the valuation of companies operating in the Czech Republic, which are in most cases non-traded companies. The second part of the article focused on three sectors: manufacture of machinery, manufacture of pharmaceutical products and construction. The capital structure of companies in the Czech Republic, Poland, Germany, France and the United Kingdom was examined.
The analysis shows that in European countries, non-traded companies are significantly less indebted than traded companies. Taking over the indebtedness of foreign traded companies for the valuation of non-traded Czech companies is thus completely inappropriate. When valuing traded companies, it is possible to take foreign data into account, but only with caution, because the amount of indebtedness varies considerably in different European countries and even within one country there is a large variance of debt values between individual companies.

Keywords: market value, business valuation, capital cost, capital structure, discount rate

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. Podkladem k článku je diplomová práce Ing. Andreje Tótha, vedená doc. Pavlou Maříkovou, obhájená na Katedře financí a oceňování podniku VŠE Praha v červnu 2021

JEL classification: G32

Published: November 4, 2021  Show citation