Oceňování, 2021 (vol. 14), issue 4

Articles

EV / EBITDA Multiple: EBTIDA Quantification

Lukáš Hruboň

Oceňování 2021, 14(4):3-17 | DOI: 10.18267/j.ocenovani.267  

This article analyses selected factors affecting EBITDA margins with focus on effects of: (i) outsourcing, (ii) rentals and leases utilization, (iii) specific accounting policies, (iv) transactions with related parties. Further, the author warns against "blind" application of the uniform sectorial EV / EBITDA multiple on each company fulfilling the same service provided / customer base criteria. A valuation expert attempting the market approach shall maximally double-check consistency between the valued company and its sectorial "peers" in: a) accounting policies affecting P&L and EBITDA calculation formula, b) application of the same fiscal year...

Valuation deviations in the compilation of industry multiples on American companies

Martin Husák, Petr Marek

Oceňování 2021, 14(4):18-37 | DOI: 10.18267/j.ocenovani.268  

The article is devoted to the issue of industry market multiples in valuing companies in terms of accuracy. A total of 1 266 US companies traded on regulated capital markets in 2010-2019 were selected for analysis. The main goal is to determine own values of the six most commonly used multiples for the US market, the median and the arithmetic average, and then to investigate deviations in these values in terms of company size, industry, company size in industry, time and values of Damodaran multiples. The analysis shows that it is more appropriate to use the median of industry multiples over a simple arithmetic average, the method of multiples for...

Quantification of return on equity of Budweiser Budvar with alternative financial structure - case study

David Chudomský, Radana Šmídová

Oceňování 2021, 14(4):38-52 | DOI: 10.18267/j.ocenovani.269  

This article focuses on financial structure and its impact on return on equity. In the case study an important Czech brewery Budweiser Budvar is analysed. The brewery is currently conservatively financially managed, thus the aim of the article is an analysis of change in return on equity with alternative capital structures while taking extra risk arising from higher leverage into account.

Can Machine Learning Be Useful in Corporate Finance and Business Valuation? Overview of Current Research

Veronika Staňková

Oceňování 2021, 14(4):53-66 | DOI: 10.18267/j.ocenovani.270  

Prediction of financial time series has been at the centre of scientific research for a long time. Recently, there have been a wide range of possibilities to apply machine learning methods. Currently, there are so many scientific papers in the field of application of machine learning in finance that it is very difficult to find the way around. The presented paper aims to provide a fundamental overview of the current state of knowledge in this area, specifically within the area of corporate finance and business valuation, and to assist in orientation in the methods of machine learning those who have not yet encountered machine learning.