Oceòování 2025, 18(2):55-76 | DOI: 10.18267/j.ocenovani.304
The article defines a typology of municipally owned enterprises using the City of Prague’s shareholding portfolio as a case study. The authors draw on four semi-structured interviews with key stakeholders (civil servants, political representatives, and company management), as well as internal documents and relevant legislation. The main outcome of the study is the classification of municipal companies into three categories: (i) public-service providers, (ii) profit-oriented enterprises, and (iii) asset-management companies.
Oceòování 2025, 18(2):43-54 | DOI: 10.18267/j.ocenovani.303
This article analyzes the economic benefits of green bonds issued by European issuers by examining their yields compared to conventional bonds, taking into account ESG factors. The analysis is based on comparing the adjusted z-spread in individual groups of bonds with a Baa1 rating. Our results show that green bonds can provide a price advantage for longer maturities, which indicates longer-term economic effects of ESG factors. We also find that the environmental score has an impact on the size of z-spreads (directly proportional), especially for shorter maturities.
Oceòování 2025, 18(2):23-42 | DOI: 10.18267/j.ocenovani.302
As part of the business valuation, the valuer should, among other things, analyze and forecast working capital and its components. For these purposes, it is advisable, namely for the market valuation, to take into account the values achieved by companies from the same industry. The aim of the article is to find out whether the amount of this value generator differs not only by industry, but also by marketability and size of enterprises. Within two countries and three sectors, the turnover times of inventories, receivables and payables and the working capital intensity of sales were examined. The main finding of the analysis is the fact that tradability...
Oceòování 2025, 18(2):3-22 | DOI: 10.18267/j.ocenovani.301
The aim of the article is to analyze the basic variants of dealing with accounting goodwill in invested capital and their impact on the income valuation of the company. On the real case of Pivovary Staropramen, s.r.o., the article demonstrates three ways to work with goodwill – keep it in the invested capital in net value, report it at the original gross value, or completely remove goodwill from the invested capital. The article points out the risk of an erroneous conclusion regarding the going concern assumption of the valued company if the high value of accounting goodwill in the invested capital causes a decrease in profitability below the...
Oceòování 2025, 18(1):33-46 | DOI: 10.18267/j.ocenovani.299
The article focuses on estimating the equity risk premium when valuing companies located in the Czech Republic and other European countries with comparable risk profiles. It highlights key challenges associated with traditional data sources, particularly from the U.S. market, which may lead to distorted estimates. The article presents a calculation of the implied equity risk premium based on current data from European companies with similar risk characteristics. This calculation, performed using the bottom-up approach, eliminates the need for additional premiums for country risk and company size. Estimates of the implied equity risk premium for large...
Oceòování 2025, 18(1):47-60 | DOI: 10.18267/j.ocenovani.300
This article discusses the main parameters for deriving discount rates at the WACC level using the CAPM in the Czech Republic for company valuation using the income approach. The article first summarizes the observed practice in the Czech Republic, then describes selected parameters of the discount rate, including model examples of various assumptions for the given parameters. Last chapter of the article contains brief reflection on discount rates for valuation of start-ups.
Oceòování 2025, 18(1):24-32 | DOI: 10.18267/j.ocenovani.298
The aim of this contribution is the analysis of the fact whether the situation in connection with SARS-CoV-2 had a more fundamental effect on the risks and on the valuation process of commercial banks. A simple hypothesis was defined, that due to the very strong financial health of Czech commercial banks and their high stability, there should not be major negative changes to their valuation process. The basic methodological tools of this contribution are the analysis of the given state, the method of comparing the current state with new findings, as well as the final synthesis with relevant recommendations for the area of valuation of commercial...
Oceòování 2025, 18(1):3-23 | DOI: 10.18267/j.ocenovani.297
The authors of this discussion paper deal with the small size premium as part of the cost of equity in income approach-based valuations in the practice of Czech Republic. By referencing to empirical professional publications and valuation textbooks the authors demonstrate the existence of a size effect and deal with arguments against the use of the small size premium, which the authors consider to be outdated. The authors also point to the usage of the size premium in Czech and foreign practice. Based on the analysis, the authors recommend including the small size premium in cost of equity estimates.
Oceòování 2024, 17(2):36-61 | DOI: 10.18267/j.ocenovani.296
This article aims to assess or verify the predictive ability of the selected prediction models and evaluate their strengths and weaknesses. The empirical study tests the predictive ability of these models on sporting goods chains or related businesses in the Czech Republic in the period of 2017 - 2022.
Oceòování 2024, 17(2):27-35 | DOI: 10.18267/j.ocenovani.295
This article focuses on the analysis of acquisition price distortions in the context of mandatory takeover bids, with particular attention to the decision of the Supreme Court of the Czech Republic (resolution 29 Cdo 293/2017) and the legal framework of the former Commercial Code. The aim is to assess the fairness of the mandatory offer price in relation to market conditions and the market value of the relevant securities. Alternative valuations using valuation models are considered as a supportive tool, relevant only when there are reasons to believe that the market exhibits signs of distortion. The article identifies key factors that may influence...
Oceòování 2024, 17(2):3-26 | DOI: 10.18267/j.ocenovani.294
Does an early-stage startup have future potential or not? This is a question that many investors or start-up appraisers ask themselves. A qualified answer to this question can be obtained by learning how and why experienced business angel investors, who are those who invest substantial sums in early-stage start-ups, make empirical decisions. In this article, we identify the key signals that are decisive for Mr. Jiøí Hlavenka, a experienced Czech angel investor in IT sector with a history of more than 50 invested start-ups and several thousand analyzed investment opportunities. The results show that the angel investor’s decision is primarily a “bet...
Oceòování 2024, 17(1):34-54 | DOI: 10.18267/j.ocenovani.293
This article deals with the method of calculating lost profits, or determining the appropriate basic formula respectively and explaining some concepts that are used in connection with the issue, while at the same time focusing on the issue of loss-making companies. The goal is to summarize the findings regarding the calculations used, to evaluate them and comment on the possibility of their use with regard to the purpose of the economic damage calculation being processed, or the nature of the economic damage case. The need to deal with an appropriate method of calculation results primarily from the fact that different methods and different groups of data...
Oceòování 2024, 17(1):16-33 | DOI: 10.18267/j.ocenovani.292
The M&A market in Europe has undergone a significant transformation over the last decade, driven by various economic, social and political factors. Between 2010 and 2023, the European M&A market experienced a period of sustained growth, with a significant increase in cross-border transactions and a shift in sector-specific trends. This paper analyses the historical developments in the European M&A market over the period 2010 to 2023 and identifies factors that may affect the European M&A market in terms of deal value.
Oceòování 2024, 17(1):3-15 | DOI: 10.18267/j.ocenovani.291
In the article, the author presents a comprehensive method for evaluating value created in an M&A transaction from the perspective of a buyer, a seller, and a combined entity. This evaluation shall be performed by a buyer both before the investment (ex ante) and with a reasonable hindsight (ex post). In a practical separate chapter, the author also provides an overview of the main tax and legal consequences of the available transaction structures (sale of shares, merger, sale of the business enterprise, sale of individual assets or contribution in-kind) in the Czech environment.
