Oceňování, 2022 (vol. 15), issue 3
Articles
The scope of discount factors used in DCF valuation in valuation practice
Jaroslav Brada
Oceňování 2022, 15(3):3-22 | DOI: 10.18267/j.ocenovani.279 
The paper describes methodological issues related to the construction of the required rate of return (WACC) for the purpose of valuation business unit using DCF entity and DCF equity methods. There is a discrepancy between the approaches of valuation practice in constructing the required rate of return on equity using the SML model using the stock market index as the so-called market portfolio versus using the market portfolio based on the theoretical CAPM model. Furthermore, the issue of identifying the cost of equity of floating rate foreign funds. The paper draws attention to the fact that DCF valuation methods are by their nature highly subjective...
M&A transactions: Introduction, role of valuation
Lukáš Hruboň
Oceňování 2022, 15(3):23-44 | DOI: 10.18267/j.ocenovani.280
This article elaborates on motives and determinants of the M&A market and application of valuation techniques in context a standard two-round M&A process, respectively. The author argues that both a seller and a buyer use valuation exercise namely to determine minimum and maximum acceptable price and to support price negotiations. Empirical studies show that an investor usually overpays in situations of: (i) unreasonably inflated expectations on positive synergies, (ii) competitive M&A process / target company actively traded in stock exchange and (iii) lack of planning and qualified human resources both during an acquisition project and...
The capitalization rate calculation in selected cities of the Czech Republic
Hana Janáčková, Josef Kašík
Oceňování 2022, 15(3):45-56 | DOI: 10.18267/j.ocenovani.281
The article aims to calculate the capitalization rate in selected cities of the Czech Republic based on data obtained from actual sales in the real estate market. The objective of this article is to answer three research questions. The first research question is whether, in line with theoretical assumptions, areas with higher levels of risk (in terms of long-run achievement of expected rents) will also exhibit higher capitalization rates than areas with lower levels of risk. The second research question is how the capitalization rate in selected urban areas of Ostrava changed as compared to its previously calculated level (specifically in 2018) in...