Oceňování, 2025 (vol. 18), issue 1
Articles
Size premium in the practice of the Czech Republic
Radovan Fišer, Zuzana Meteláková
Oceňování 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of a size effect and deal with arguments against the use of the small size premium, which the authors consider to be outdated.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.
The issues of valuation of commercial banks in the post-covid era
Milan Hrdý
Oceňování 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...
The equity risk premium calculation based on European data
Jan Marek
Oceňování 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...
Discount rate and its parameters in the Czech Republic
Jakub Říha
Oceňování 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.