Valuation of the company. Scientific electronic library The concept and types of value of a service enterprise

Parameter name	Meaning
Article topic:	Types of cost
Rubric (thematic category)	Production

Taking into account the dependence on the purpose of the assessment, the number and selection of factors taken into account, the appraiser calculates various types of value.

Price- this is the monetary equivalent that the buyer is willing to exchange for any item or object. Value is different from price and cost.

1. According to the degree of marketability distinguish between market value and normatively calculated value.

Under market value in International Valuation Standards it is customary to understand the estimated value for which property is expected to change hands on the valuation date as a result of a commercial transaction between a willing buyer and a willing seller after adequate marketing; it is assumed that each party acted competently, prudently and without coercion. Market price- this is the most likely price in a transaction between a typical buyer and seller.

In some cases, market value may be negative. For example, this should be the case in the case of assessing obsolete real estate properties, the amount of demolition costs of which exceeds the value of the land plot, or in the case of assessing environmentally friendly properties.

Standard calculated cost- this is the value of the property, calculated on the basis of methods and standards approved by the relevant authorities (Goskomimushchestvo, Goskomstat, Roskomzem). In this case, uniform standard scales are applied. As a rule, the normatively calculated value does not coincide with the market value, however, the standards are periodically updated in accordance with the market value base.

2. From an evaluation point of view There are market, investment, insurance, taxable, and disposal values.

When valuing a property for sale on the open market, it is used market price.

When justifying investment projects, the investment cost is calculated. Investment cost- the cost of property for a specific investor for certain investment purposes.

Unlike market value, which is determined by the behavior of a typical buyer and seller, investment value depends on individual requirements to investments required by a specific investor.

There are a number of reasons why investment value may differ from market value. The main reasons are differences: in the assessment of future profitability; in ideas about the degree of risk; in a tax situation; in combination with other objects owned or controlled by the owner them.

Insurance cost - The value of a property as determined by the provisions of an insurance contract or policy.

Taxable value- cost calculated on the basis of the definitions contained in the relevant regulatory documents related to property taxation.

Recycling (scrap) cost- the cost of a property (except for a land plot), considered as the total cost of the materials contained in it, without additional repairs.

3. Considering the dependence on the nature of the analogue distinguish between reproduction cost and replacement cost.

Cost of reproduction- this is the cost of a property created according to the same layout and from the same materials as the one being assessed, but at current prices.

Replacement cost- this is the cost of a close analogue of the object being valued.

Reproduction cost and replacement cost are widely used in the insurance industry.

4. In accounting distinguish between book value, residual value and replacement value.

Book value- costs of construction or acquisition of property. Book value can be either initial or replacement value. The initial cost is reflected in the accounting documents at the time of commissioning. Replacement cost- the cost of reproduction of previously created basic assets in modern conditions; determined in the process of revaluation of underlying assets. Residual value is the original (replacement) value minus depreciation.

5. Considering the dependence on the development prospects of the enterprise distinguish between the cost of an operating enterprise and the liquidation value.

Operating enterprise cost- this is the cost of the formed enterprise as a whole, and not of any of its components. The value of individual assets or components of an operating enterprise is determined on the basis of their contribution to the business and is perceived as their use value for a particular enterprise and its owner.

The assessment of an operating enterprise assumes that the business has favorable development prospects; therefore, one can expect the preservation of the enterprise as a system, and the value of the whole is usually always greater than the simple sum of the costs of the individual elements.

Liquidation value, or forced sale cost, is the amount of money that should actually be received from the sale of the property in a time period that is too short for adequate marketing. When determining it, it is extremely important to take into account all the costs associated with the liquidation of the enterprise, such as commissions, administrative costs for maintaining the operation of the enterprise before its liquidation, costs for legal and accounting services. The difference between the proceeds that can be obtained from the sale of the company's assets on the market and the costs of liquidation gives the liquidation value of the company.

When assessing the value of an enterprise, there is also such a concept as effective cost. Efficient value - the value of assets, equal to the greater of two values - the use value of assets for a given owner and the cost of their sale.

Any type of value calculated by an appraiser is not a historical fact, but an assessment of a specific property at a given moment in accordance with the chosen purpose.

The economic concept of value expresses a real view of the benefit that the owner of a given object or buyer has at the time of valuation. The basis of the value of any property, incl. business, is its usefulness.

In addition to the concept of “cost,” in the theory and practice of valuation, the concepts of “price” and “cost” (cost) are used.

Price is an indicator indicating the amount of money required, expected or paid for a certain product or service. It is a historical fact, ᴛ.ᴇ. refers to a specific moment and place. Given the dependence on the financial capabilities, motives or special specific interests of the buyer and seller, the price may deviate from the value.

Cost price is the amount of money required to create or produce a good or service. Cost includes the totality of costs, expenses or expenses. Upon completion of the process of creation or act of purchase and sale, the cost price becomes a historical fact. The price paid by the buyer for goods and services becomes the cost of acquisition for him.

Cost influences market value, but it is definitely Not defines.

The skillful combination and use of all these concepts allows for a high-quality assessment of property. Along with the fundamental concepts underlying the transaction, there are also uniform principles and generally accepted methods for assessing property.

Table. Relationship between the purpose of valuation and the types of value used for valuation

Types of value - concept and types. Classification and features of the category “Types of cost” 2017, 2018.

- List the main types of value determined when assessing real estate (according to FSO-1,2).

Types of real estate and signs of its classification Expand the concept and define the signs of real estate, tell us about the classification of real estate objects. Real estate includes land and objects that were created on it: buildings, structures,....

- Main types of real estate values

Factors influencing the value of real estate Valuation of real estate There are four factors influencing the value of real estate. 1. Demand is the quantity of a given product or service that finds solvent buyers on the market.... .

The market value of the valuation object (exchange value) is the most probable price at which this valuation object can be alienated on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and... .

- Types of value determined during real estate valuation.

Features of real estate as an object of evaluation. Objects and subjects of assessment. Real estate is a specific product that is traded in the investment sector. The most significant differences of this product include its economic and physical... .

- Types of value determined by the benefits from the use of the property

Types of cost based on accounting for past costs Replacement cost (costs of complete restoration) - costs at current prices that must be incurred when recreating an exact duplicate of a given property (using the same... .

- Valuation and accounting of fixed assets. Types of cost of fixed assets: initial, replacement, residual, liquidation and average annual.

Depreciable initial cost (Fprim.) - the sum of the costs of construction, purchase, transportation in prices of the year when they were put into operation. At this cost, fixed production assets are listed on the enterprise's balance sheet (first year). F first = C lower... .

- Standard types of value of the valuation object

Economic types of value of the valuation object Principles for formatting valuation results Principles reflecting the market point of view Principles reflecting the relationship of components... .

- Types of cost of fixed assets

Definition, characteristics and classification of fixed assets Fixed assets and investment activity of the enterprise Fixed assets are means of labor that are repeatedly used in the production process, without changing... .

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Estimation of the value of a service sector enterprise

1. Methodology for assessing the value of property

1.1 The concept of assessing the property complex

Today, the valuation of property or property complexes is the most common type of valuation activity, this is primarily due to the wide range of valuation objects classified as property.

Property is an object of utility owned or used by individuals or legal entities. In other words, property is the totality of property rights of a specific legal entity or individual.

Property complex - a complex of property rights of a legal entity to all objects involved in carrying out business activities.

As a result, the assessment of a property complex is the most complete type of assessment, including the assessment of real estate, machinery and equipment, vehicles, financial investments, intangible assets, etc. When assessing a property complex, in addition to assessing all the components of a given property complex, it is necessary to take into account the so-called synergy effect.

Currently, many factors constantly change the value of property. These factors include: economic crisis, wear and tear, changes in property properties, rise and fall in real estate prices and others. All these factors make it much more difficult to obtain up-to-date information on the value of property. Property valuation allows you to determine the value of property as accurately and efficiently as possible in a rapidly changing economic situation in the country.

Today, valuation of property and property complexes are the most common types of valuation services.

Property valuation is carried out in the following cases: purchase and sale of property; obtaining a loan secured by property; property insurance; property disputes; contribution of property to the authorized capital; transfer of property for rent; transfer of property into trust management; optimization of enterprise taxes; registration of property for accounting and tax purposes; assessing the total value of the organization that owns the property; development of a business plan for an enterprise; making management and investment decisions; carrying out the bankruptcy procedure of an enterprise; determining the initial price of property at auction; purchase and sale of an enterprise that owns property; merger or acquisition of an enterprise that owns property; seizure of property for state and municipal needs.

Types of property valuation depend on the purpose of its implementation and are as follows:

1. valuation of enterprise property and its shares. It is a set of actions whose purpose is to establish the value of the company’s assets that are profitable or capable of generating profit;

2. real estate valuation. Contributes to the implementation of profitable transactions, making productive decisions about their implementation;

3. assessment of damage caused to property from natural disasters, floods, fires, illegal actions of persons or government agencies;

4. land valuation. Determining the value of one or more land plots;

5. assessment of housing (apartments). May include both a full determination of the cost of housing and a share of ownership;

6. assessment of motor transport. The process of determining the value of a vehicle on the market at present;

7. assessment of machinery and equipment. The goal is to determine the real value. Two approaches are used: analogue and assessment based on replacement cost taking into account wear and tear.;

8. assessment of damage from a traffic accident.

For each type of property valuation, there are special methods and approaches that allow you to most accurately and reliably determine the value of property.

Property valuation includes the collection and analysis of data about the property by an expert appraiser to determine the total value, in accordance with this legislation and standards.

Objects of assessment: tangible property: movable, immovable; ownership rights to property.

Types of value when assessing property: market value - for the sale of an object; restorative - to create an identical object; investment - to identify promising income.

The set of types of cost gives a complete picture of the real price of the object.

The main stages of property assessment: concluding an assessment agreement; determination of property characteristics; analysis of the relevant market; choice of assessment method; carrying out calculations; displaying the total cost of the object; preparation of an assessment report

In some cases, the assessment of an enterprise is required by law, in some cases it can contribute to development and acceleration of growth, and is carried out on one’s own initiative.

In any case, enterprise assessment is the task of organizations, and, therefore, professionals.

It is necessary to distinguish between business valuation and enterprise valuation. An enterprise as a property complex includes all types of property intended for its activities: land plots, equipment, raw materials and products, intangible assets. Assessing the market value of an enterprise's property complex means determining in monetary terms the value of the enterprise's tangible assets as a set of values of fixed assets.

Valuing the business of an operating enterprise is somewhat different from valuing an enterprise as a property complex. This difference is due to the fact that business is a broader concept than a property complex. Business valuation includes determining the value of the company's liabilities and assets: real estate, machinery and equipment, inventory, financial investments, intangible assets. In addition, the company’s performance, its past, present and future income, development prospects and competitive environment in this market. As a result of such an integrated approach, the real value of the business and its ability to make a profit are determined.

In accordance with Russian valuation standards, the procedure for assessing the market value of blocks of shares is carried out using three approaches: costly; comparative; profitable.

Each of these approaches has its own specific methods and techniques. The data used in a particular approach reflects either the company's present position, its past achievements, or expected future earnings.

After receiving the assessment results for each of the three approaches, the results of the company’s market value are agreed upon and the package being assessed is calculated .

1.2 Cost-effective approach

The cost approach considers the value of an enterprise in terms of costs incurred. The book value of an enterprise's assets and liabilities due to inflation, changes in market conditions, and accounting methods used does not always correspond to market value. As a result, the task arises of adjusting the balance sheet of the enterprise. To do this, the reasonable market value of each balance sheet asset is first assessed separately, then the current value of the liabilities is determined, and finally, the current value of all its liabilities is subtracted from the reasonable market value of the total assets of the enterprise. The result shows the estimated value of the enterprise's equity.

Net asset method . The value of the net assets (equity capital) of an enterprise is determined by the formula:

C = A - O (1)

where C - cost of equity;

A - market value of all assets;

ABOUT - the present value of all liabilities.

Calculating value using the net asset method includes several steps:

1. The enterprise’s real estate is assessed at market value

2. Op the market value of machinery and equipment is determined

3 . You intangible assets are and are assessed.

4 . Op The market value of financial investments, both long-term and short-term, is determined.

5 . That Inventories are converted to current value.

6 . Ots accounts receivable are reduced.

7. Future expenses are estimated.

8. The enterprise's liabilities are translated into current value.

9. The value of equity capital is determined by subtracting the current value of all liabilities from the reasonable market value of the amount of assets.

Liquidation value method . This method is used if it is planned to close an enterprise and sell its assets separately, as well as during the reorganization of an enterprise, the examination of programs for the reorganization of an enterprise, the financing of the reorganization of an enterprise, and the assessment of applications for the purchase of an enterprise.

Calculation of the liquidation value of an enterprise includes several main stages:

1. The latest quarterly balance sheet is taken into account.

2. A calendar schedule for asset liquidation is being developed, since the sale of various types of enterprise assets (real estate, machinery and equipment, inventory) requires different time periods.

3. The gross proceeds from the liquidation of assets are determined.

4. The estimated value of assets is reduced by the amount of direct costs.

Direct costs associated with the liquidation of a business include commissions to appraisal and law firms, taxes and fees that are paid upon sale. Taking into account the asset liquidation calendar, the adjusted values of the assessed assets are discounted to the valuation date at a discount rate that takes into account the risk associated with this sale.

5. The liquidation value of assets is reduced by the costs associated with owning assets until they are sold, including the costs of maintaining inventories of finished products and work in progress, preserving equipment, machinery, mechanisms, real estate, as well as management costs for maintaining the operation of the enterprise until its completion liquidation. The discount period for the corresponding costs is determined according to the calendar schedule for the sale of the enterprise's assets.

6. Operating profit (loss) of the liquidation period is added (or subtracted).

7. Preferential rights to severance pay and payments to employees of the enterprise, claims of creditors for obligations secured by a pledge of the property of the liquidated enterprise, debt on obligatory payments to the budget and extra-budgetary funds, and settlements with other creditors are deducted.

Thus, the liquidation value of an enterprise is calculated by subtracting from the adjusted value of all assets on the balance sheet the amount of current costs associated with the liquidation of the enterprise, as well as the value of all liabilities.

Adjusted book value method . This method is conditionally market based. It is carried out on the basis of the Procedure for assessing the value of net assets of joint stock companies No.Y n, 03 - 6 /pz dated January 29, 2003 G ., approved by the Ministry of Finance of Russia and the Federal Commission for the Securities Market of the Russian Federation.

1.3 Income approach

When using the income approach, the main factor determining the value of an object is the income brought by the object of assessment. What matters is the duration of the period of obtaining possible income, as well as the type and degree of risks accompanying this process. The income approach determines the present value of future income that will arise from the use and possible further sale of property.

Discounted cash flow method. Determining the value of a business using this method is based on the assumption that a potential investor will not pay for this business an amount greater than the current value of future income from this business.

The discounted cash flow method is used to value existing businesses. The use of this method is most justified for assessing enterprises with a certain history economic activity and those at the stage of growth or stable economic development. The lack of a profit retrospective makes it difficult to objectively forecast a business's future cash flows [ 9 , With. 1 32- 1 36 ].

Main stages of enterprise valuation using the discounting method cash flows:

1 . You boron cash flow model

2. Determining the duration of the forecast period.

3. Flashback anal from and forecast of gross sales revenue

4. Cost analysis and forecast

5. Investment analysis and forecast

6. Calculation of cash flow for k each year of the forecast period

7. Determining the discount rate.

8. Calculation of the value in the post-forecast period.

9. Calculation of the current values of future cash flows and the value in the post-forecast period.

10. Making final amendments

Profit capitalization method . This method is also based on the basic premise that the value of an ownership interest in a business is equal to the present value of the future earnings it will generate. own. The essence of this method is expressed by the formula:

Estimated value = Profit

Capitalization rate (2)

The profit capitalization method is most suitable for a situation in which the company is expected to receive approximately the same amount of profit over a long period of time (or its growth rate will be constant).

The main stages of applying the profit capitalization method

1. Analysis of financial statements, their normalization and transformation.

2. Selecting the amount of profit that will be capitalized (this value can be net profit, gross profit or cash flow).

3. Calculation of an adequate capitalization rate.

4. Determination of the preliminary cost value.

5. Making adjustments for the presence of non-performing assets (if any).

6. Making adjustments for the controlling or non-controlling nature of the assessed share, as well as for lack of liquidity (if necessary).

1.4 Comparative approach

The comparative approach is applied if there is a sufficient number of comparable objects. For comparison, objects that compete with the company being evaluated are selected, which have recently been sold, and about which reliable information can be collected. There are usually differences between them, so the data is adjusted accordingly. A feature of the comparative approach is the orientation of the final value, on the one hand, to the market prices of purchase and sale of shares owned by similar companies, and on the other hand, to the actually achieved financial results. This approach assumes that the value of assets is determined by how much they can be sold for in the presence of a sufficiently mature financial market. In other words, the most probable value of the company being valued may be the actual selling price of a similar company recorded by the market.

The effectiveness of this approach is reduced if there were few transactions and the moments of their execution and evaluation are separated by a long period, if the market is in an abnormal state, since rapid changes in the market lead to distortion of indicators.

The possibility of applying the comparative approach depends on the presence of an active financial market, since the approach involves the use of data on actual transactions. Market openness or the availability of financial information are also important.

Output of the final cost value . When deriving the total, adjustments are made depending on what percentage of share ownership is being valued and what valuation methods are used.

To obtain the cost of a minority stake from a proportional share of the cost of the full one (100% ) of the package calculated using the above methods, a discount is deducted for the non-controlling nature.

Discount for non-controlling nature - the amount by which the value of the assessed share of the block (in the total value of the company's block of shares) is reduced, taking into account its non-controlling nature. It is a derivative of the control premium and is calculated using the formula:

Discount = 1 - 1 / (1 + Control Premium) (3)

Control premium is a monetary expression of the advantage associated with owning a controlling stake. It reflects the additional possibilities of control over the enterprise compared to ownership of a minority stake. The average control premium ranges from 30-40% .

Discount for low liquidity. Suitability for quick sale (liquidity) definitely increases the value of a business and, on the contrary, the lack of liquidity reduces its value compared to a comparable, however, highly liquid business. In other words, the market pays a premium for liquidity and reduces the price when there is no liquidity. Typically, a lack of liquidity is typical for closed companies that do not have a ready market for shares.

2. Evaluation withcost 30% block of shares of JSC « Mashservice»

2.1 Analys activitiesJSC agency « Mashservice»

OJSC Mashservice is a multifunctional complex with the dominant function of trade and exhibition real estate, located in the business center of Nizhny Novgorod.

The priority areas of the company's activities are:

1. Renting out your own non-residential real estate;

2. Production of thermal energy (steam and hot water);

3. Ensuring the operability of electrical and heating networks.

The main market for the business activities of Mashservice OJSC is the city of Nizhny Novgorod. At the moment, the market of multifunctional complexes in Nizhny Novgorod is represented by more than 40 mixed-use complexes and business centers with a leased area of more than 2,252.8 thousand square meters. m.

The main competitors of Mashservice OJSC are: MC “Furniture City”, BC “Aquatoria”, MC “Great”, due to their close location.

In order to ensure the competitive functioning of the business center and shopping center of Mashservice OJSC, as well as to ensure the functioning of the infrastructure, the company’s specialists developed a pricing policy and the introduction of new areas of building G, which would allow increasing revenue from the main activity in 2011 at the level of a prosperous 2010 G.

To comprehensively study the situation on the commercial real estate market and the position of Mashservice OJSC on it, we will conduct a SWOT analysis:

Assessment of weak and strengths

Assessing opportunities and threats

Mashservice OJSC has a number of advantages that strengthen its position in the market. This is a good location from a strategic point of view (close to all transport hubs), as well as the production and transmission of thermal energy to consumers. However, a major drawback of this multifunctional complex is the insufficient area of class A premises for rent, as well as the unfinished construction of some buildings.

OJSC "Mashservice" is a multifunctional complex, the main activity of which is the provision of rental services for commercial premises (this type of business activity provides more than 90% of the issuer's revenue (income) for the reporting period).

The change in the revenue of Mashservice OJSC from core business activities in 2009 and 2010 by more than 10% is associated with a decrease in the business activity of organizations, and as a result, an outflow of tenants, however, in 2011 there was a positive trend, which makes it possible to make optimistic forecasts for future.

Rice. 1. Dynamics of revenue volume

For a more detailed analysis of the state of the enterprise, we will consider the main indicators of its activities and conduct their financial analysis.

2.2 Analysis of the financial condition of the enterprise

The balance sheet is the main source document for analyzing the financial condition of an enterprise. Express analysis of the balance sheet is carried out in three stages.

Stage 1. Evaluation of the results of comparing the growth rate of the balance sheet currency and key performance indicators: sales revenue and profit.

In this case, the correct ratio is the following:

Profit growth rate > Revenue growth rate > Asset growth rate

Comparing the growth rates of profit, revenue and assets of the enterprise, we obtained the following ratio:

Asset growth rate > Revenue growth rate > Profit growth rate (106.7 > 99.37 > 44.67).

The ratio Asset growth rate > Revenue growth rate means that the business activity of management has decreased and the turnover of the enterprise's assets is decreasing, which implies an increase in the cost level and a decrease in sales profitability.

The ratio Revenue growth rate > Profit growth rate indicates that, despite the decrease in revenue (taking into account the price index in the service industry), the enterprise's cost of services provided and products sold is increasing, which is largely due to rising prices.

Stage 2. Analysis of asset composition.

Largest specific gravity the structure of the organization's property consists of non-current assets. Their share in 2010 compared to 2009 increased by 4% (88.6% versus 84.38%), which is a consequence of the commissioning of two new buildings, building H and building B, and indicates an increase in the organization’s production potential.

A similar situation is observed with the current assets of the enterprise. A vertical analysis of current assets showed that the company is experiencing a reduction in the share of inventories. At the same time, there is a decrease in the share of receivables in the composition of assets from 14.8% to 10.9%, which indicates the effectiveness of the work carried out with customers in the area of reducing installment payments. An increase in the share of cash indicates that the company's funds are not being used effectively.

Stage 3. Analysis of the composition of liabilities.

In general, the amount of equity in 2010 compared to 2009 increases by 29.9%. The growth of equity capital ensures a reduction in short-term liabilities, primarily to suppliers and contractors, reducing the amount of debt in 2010 compared to 2009 by 50%. Among the borrowed sources of financing, the company uses both short-term and long-term liabilities.

Moreover, if we compare the dynamics of accounts payable and receivable, we can identify the following trend: there is a decrease in accounts receivable and a decrease in accounts payable. The decrease in accounts receivable is due to improved payment discipline of customers. The increase in long-term liabilities indicates plans for the development of a multifunctional complex through the commissioning of additional buildings, for the construction of which a long-term loan was taken.

Positive signs of assessing the balance sheet based on the reading results: an increase in the balance sheet currency, a decrease in the share of inventories as part of current assets, a decrease in accounts receivable as part of current assets, an increase in the share of equity capital, and a decrease in accounts payable.

Negative signs of balance assessment:

Excess of borrowed funds over equity capital,

Increase in long-term liabilities.

The express analysis of the financial condition of the enterprise allowed us to obtain a preliminary assessment of the activities of this enterprise. For a more in-depth analysis, it is necessary to conduct a coefficient analysis of the financial condition of the enterprise.

We will analyze the financial condition of the enterprise based on indicators of solvency, financial stability, etc.

The overall coverage ratio characterizes the payment capabilities of the organization, assessed subject to not only timely settlements with debtors and favorable sales of finished products, but also the sale, if necessary, of other elements of material current assets. In this case, the ratio of current assets to current liabilities at the beginning of 2010 was 0.69:1, at the beginning of 2011 - 0.863:1, which indicates an excess of current liabilities over current assets.

Table 2. Solvency indicators

Index	Indicator value	Deviation


Overall Coverage Ratio
Liquidity ratio subject to mobilization of reserves and costs
Current solvency indicator

At the same time, at the beginning of 2010, the total coverage ratio was below the recommended value, which indicates the existing risk of untimely repayment of current obligations. Our company has enough property to pay off all its debts upon liquidation of the business, but does not have enough current assets to pay off current debts in a timely manner during the normal continuation of business. At the beginning of 2011 the situation had improved somewhat.

The liquidity ratio, subject to the mobilization of inventories and costs, characterizes the degree of dependence of solvency on inventories and costs from the point of view of the need to mobilize funds to pay off short-term obligations. The value of this indicator is below the standard value, which indicates the inability of the enterprise to pay off its short-term obligations by mobilizing reserves and costs.

The indicator of current solvency indicates how long the current debt can be repaid, provided that proceeds from the sale of goods are used to repay it. This indicator is slightly lower than the recommended value, however, at the beginning of 2011 compared to the beginning of 2010, the value of the coefficient shows positive dynamics, which indicates an improvement in the solvency of the enterprise.

In general, we can conclude that the company’s current assets are not enough to repay them if necessary. This indicates that the company has a relatively high risk of loss of solvency.

Table 3. Financial stability indicators

Index	Indicator value	Deviation


Debt to equity ratio
Financial security ratio with own funds
Maneuvering ratio of own working capital

Let's analyze the financial stability indicators presented below.

The ratio of equity and borrowed funds shows how much borrowed funds are accounted for per 1 ruble of equity capital invested in the assets of the enterprise. This indicator significantly exceeds the recommended value, which means the enterprise’s dependence on external sources of funds and loss of financial stability. However, over the course of two years, this indicator has been decreasing, which demonstrates positive dynamics. At the same time, a decrease in accounts payable is associated with an increase in revenue, and an increase in long-term liabilities is associated with the development of a multifunctional complex.

The coefficient of financial security with own funds shows the availability of the enterprise's own funds necessary to ensure its financial stability. The value of this indicator is below the recommended one, which indicates the unstable financial condition of the enterprise and the lack of great opportunities in pursuing an independent financial policy. However, the value of this indicator at the beginning of 2011 is still significantly decreasing, which is due to the fact that the company allocated most of its own funds to the construction of two new buildings, which were put into operation in 2010.

The value of the agility coefficient is also lower than the recommended values, but over the course of 2 years, this indicator also shows positive dynamics, although it remains quite low and, as a result, the enterprise has almost no room for financial maneuver.

Based on the above, we can conclude that at the moment the enterprise is not financially stable, but there is a negative trend due to the fact that the multifunctional complex is at the stage of development, which is inextricably linked with the use of borrowed funds.

Table 4. Business activity indicators

Index	Indicator value	Deviation


Working capital turnover ratio
Equity turnover ratio
Inventory turnover ratio
DZ turnover ratio
KZ turnover ratio

The working capital turnover ratio characterizes the rate of turnover of the enterprise's current assets and generates debt reimbursement. The decrease in working capital turnover is due, first of all, to a slight decrease in revenue, which was caused by a decrease in demand for the services provided. This ultimately leads to a deterioration in the solvency of the enterprise, and, accordingly, a slowdown in the turnover of accounts payable.

Changes in business activity indicators affect profitability indicators. Let us analyze the resource use intensity indicators presented in Table 5.

Table 5. Resource use intensity

Return on assets characterizes the efficiency of using an enterprise's assets. The values of these indicators are quite high for this enterprise, which indicates the efficient use of assets. It is impossible not to note the negative dynamics of all indicators caused by an increase in the cost of services provided.

The profitability of products sold characterizes the effectiveness of the costs incurred by the enterprise for the production and sale of products. A sharp change in the value of this indicator, accompanied by negative dynamics, indicates the need to revise prices and strengthen control over the cost of manufactured products.

Return on sales characterizes the level of demand for the company's products and services. A sharp decrease in the value of this indicator by 2 times indicates a decrease in demand for the company’s products.

In general, we can judge the fairly efficient use of enterprise resources.

Based on the conducted ratio analysis of the financial condition, the following trends in the enterprise’s activities were identified:

Solvency indicators are below standard values, however, there is a positive trend in these indicators,

Financial stability indicators are significantly below the norm, which indicates the enterprise’s strong dependence on borrowed funds,

There is a decrease in resource use efficiency indicators, although their values are quite high,

The enterprise’s business activity indicators also have values close to normal, although they show negative dynamics for the reporting year.

Based on this, we can conclude that the company uses available resources quite effectively, but is very dependent on borrowed funds, since it is in the development stage.

To analyze the reasons for the decline in efficiency and business activity, it is necessary to analyze the financial results of the enterprise.

Financial results characterize the absolute efficiency of the enterprise’s management in all areas of its activity: production, sales, supply, financial and investment. They form the basis for the economic development of the enterprise and the strengthening of its financial relations with all participants in commercial activities. Therefore, the analysis of financial results is given special attention at the enterprise.

When conducting external analysis or express analysis of profit based on marginal income, the following factor model can be used:

Table 6. Enterprise performance indicators

Indicators	Indicator value	Deviation, thousand rubles	Rate of change, %


Volume of products sold, thousand rubles.
Variable expenses, thousand rubles.
Variable expenses per 1 rub. commercial products
Amount of coverage (marginal income), thousand rubles.
The amount of coverage per 1 rub. commercial products
Fixed expenses, thousand rubles.
Profit from sales, thousand rubles.
Return on sales, %

Analysis of financial results also involves assessing changes in profitability of sales. As can be seen from the table, there is a decrease in profitability of sales, this is due to an increase in production costs in terms of an increase in variable costs by 1 ruble. commercial products.

2.3 Cost estimate 30% block of shares of JSC « Mashservice»

In this chapter, we will evaluate the value of the business of Mashservice OJSC. To assess the value of the company's shares, we calculate the market value of a 30% stake.

When conducting assessments, income and comparative approaches are used. When assessing the market value of a 30% stake in Mashservice OJSC, only 2 approaches will be used.

2.3.1 Assessment of the market value of OJSC « Mashservice» income approach

When assessing the value of a 100% stake in Mashservice OJSC within the framework of the income approach, the method of discounted future cash flows will be used. The use of this method is due to the unevenness of cash flows within the forecast period and their significant positive value in the post-forecast period.

The discounted cash flow method is implemented in 5 main stages. Let's analyze each of these stages in detail.

Stage 1. Defining a Cash Flow Model

When estimating the value of a business, two cash flow models are used: cash flow for equity and cash flow for total invested capital. Assessing the value of a business using the first model involves estimating the value of equity capital, and the second of all invested capital (equity and debt). Since we need to estimate the value of 100% of the company's shares, therefore, we will use the cash flow model for equity capital.

Stage 2. Determining the duration of the forecast period

According to the discounted cash flow method, the value of an enterprise is determined on the basis of future cash flows that can be received during the operation of the enterprise. Therefore, an important task is to determine the duration of the forecast period, i.e. the period during which cash flows will change, and after which they will stabilize. In this case, a period of 4 years is taken as the forecast period. We will also assume that cash flow will grow annually by an average of 3%.

Stage 3. Determination of the amount of net cash flow in the forecast and post-forecast periods

There are two main methods for calculating net cash flow: direct and indirect. The direct method is based on the analysis of cash flows by items of income and expense, i.e. according to accounting accounts. The indirect method involves estimating net cash flow based on changes in balance sheet items and net profit. To determine the net cash flow of the Mashservice enterprise, an indirect method will be used, since in connection with the implementation of the financial recovery plan, significant changes were made to the balance sheet and profit and loss account, which must be taken into account when calculating net cash flow.

Calculation of net cash flow for equity capital using the indirect method is carried out using the following formula:

Net cash flow for s.k. = Net profit + Depreciation - Investments - Change in own working capital + Change in long-term liabilities.

The calculation results are presented in Table 7.

Table 7. Calculation of net cash flow

Indicators	Forecast period	Post-forecast period


Net profit, thousand rubles.
Depreciation, thousand rubles
Investments, thousand rubles
Own working capital, thousand rubles.
Change in own working capital
NPV, thousand rubles.

Stage 4. Determining the discount rate

The discount rate is used to determine the amount a potential investor would pay today (here, present value) for the opportunity to receive expected future earnings (future cash flow), taking into account the degree of risk of obtaining those earnings.

According to valuation theory, the discount rate should be calculated on the same basis as the cash flow to which it is applied. So, if a debt-free cash flow is selected (for invested capital), then the discount rate is calculated using the weighted average cost of capital (WACC) model. If cash flow for equity capital is selected, then the discount rate can be calculated either cumulatively (build-up) or using the capital asset pricing model (CAPM - Capital Asset Pricing Model).

In our case, the flow for equity capital is chosen as the cash flow. In addition, it is known that the shares of the enterprise OJSC Business Center Akvilon are not quoted on the stock exchange, therefore, there is no necessary data to calculate the discount rate using the capital asset method. Based on this, the discount rate will be calculated based on the cumulative construction method.

In accordance with this method, the calculation base is the rate of return on risk-free securities, to which is added a premium for the specific risk of investing in a specific business.

Based on data from the Central Bank of Russia regarding market rates for medium-term GKOs, the rate of return on risk-free securities was determined, which amounted to 7.58%.

To determine the premium for the risk of investing in the business being valued, we will consider the main types of risks and their parameters (Table 8).

For each of these factors, a premium is assigned in the amount of 0 to 5%.

1% and 2% means that the situation at the enterprise is more favorable than the industry average,

3% means that the company operates like the industry average,

4% and 5% means that the situation at the enterprise is less favorable than the industry average.

Table 8. Types and parameters of risk

Types of risk	Risk parameters
Management team, quality of management	Independence (dependence) on one key figure; presence (absence) of management reserve.
Enterprise size	Large (medium, small) enterprise; the form of the market in which the company operates from a supply position: monopoly or competitive.
Financial structure (sources of company financing)	Corresponding to the norms (inflated) share of borrowed sources in the total capital of the company. The industry average level can be taken as the norm.
Product and territorial diversification	Wide (narrow) range of products; territorial boundaries of the sales market: external, regional, local market.
Level and predictability of profits	Availability (absence) of information for the last few (three to five) years about the company’s activities necessary for forecasting/
Other risks	Additional risks. Determined by experts.

Discount rate = 7.58+3+3+3+1+1 = 18.58 (0.1858)

Let's evaluate each type of risk for a given enterprise:

1) Management team, quality management. Mashservice OJSC has been on the services market for quite a long time, so its personnel are recruited carefully and professionally.

2) Enterprise size. A comparison of the cost of fixed assets at the enterprise with the cost of fixed assets on average for the industry showed that Mashservice OJSC is a medium-sized enterprise;

3) Financial structure. Since the share of borrowed capital in the balance sheet structure exceeds the share of equity capital, it shows the dependence of this business on borrowed funds, but in general this is the industry average.

4) Product and territorial diversification. Product diversification is characterized by the breadth of services offered;

5) Level and predictability of profits. The efficiency of the enterprise is quite high;

6) No other risks associated with investments in this enterprise have been identified.

Stage 5. Determining business value

At this stage, the value of the business is calculated in the forecast and post-forecast periods, after which the final cost of the business is determined.

The value of the business in the forecast period is determined by discounting the net cash flow at the rate calculated at stage 4.

When discounting projected cash flows, we took into account the fact that the company receives income and incurs expenses evenly throughout the year, so discounting of flows was carried out at the middle of the year.

Business value in the forecast period = 1227.96/(1+0.1858) 0.5 +1042.64/(1+0.1858) 1.5 +7698.96/(1+0.1858) 2.5 +14658.35/(1+0.1858) 3.5 = 15036.39 thousand rubles.

The cost of a business in the post-forecast period is determined depending on the prospects for business development in the post-forecast period, and the following methods are used:

Calculation method based on liquidation value (if the company is expected to go bankrupt in the post-forecast period with the subsequent sale of assets).

Calculation method based on net asset value (for a stable business with significant tangible assets).

The estimated sale method (converting the projected cash flow from the sale into the current value).

Gordon method (income of the first post-forecast year is capitalized into value indicators using a capitalization ratio calculated as the difference between the discount rate and long-term growth rates).

In our case, the cost in the post-forecast period will be determined using the Gordon method, since it is planned that the enterprise will operate for an indefinitely long time and at approximately the same pace.

Business value in the post-forecast period = (27396.99/0.1858-0.03)*(1 /(1+0.1858) 4.5 =81674 thousand rubles.

The resulting value of the business in the post-forecast period is added to the value obtained in the forecast period, the result is the market value of 100% of the shares.

The cost of the business as a whole = 15036.39 + 81674 = 96710.39 thousand rubles.

Thus, the value of the business, calculated by the income approach using the discounted future cash income method, amounted to 96,710.39 thousand rubles.

2.3.2 Valuation of JSC « Mashservice» comparative approach

A comparative approach to the valuation of an enterprise's business is a set of methods for estimating the value of the valuation object, based on comparison of the valuation object with similar objects for which there is information on prices and transactions with them.

The main advantage of the comparative approach is that the value of an enterprise’s business is actually determined by the market, since the appraiser only adjusts the real market price of the analogue for better comparability, whereas when applying other approaches to valuing a business or shares of an enterprise, the value is the result of a calculation.

There are 3 comparative approach methods: the capital market method, the transaction method, and the industry coefficients method.

The capital market method, or peer company method, is based on financial analysis and determining the market value of an enterprise using price multipliers.

The transaction method is based on the use of the purchase price of the enterprise - an analogue as a whole or its controlling stake. In this case, the basis for comparison is the price of a controlling or complete block of shares, including a premium for elements of control.

The method of industry coefficients, or the method of industry ratios, is based on the use of recommended ratios between the price of an enterprise's business and certain financial parameters.

As part of the comparative approach, the capital market method will be used to estimate the value of the enterprise. The capital market method within the framework of the comparative approach is implemented in 5 stages. Let's consider each stage sequentially.

Stage 1. Collection of information, selection of analogue companies. 5 business centers were chosen as analogues: OJSC BC Linkor, OJSC MC Mebel CITY, BC Aquatoria, BC Na Monetnaya, MC Great.

Stage 2. Calculation of valuation multipliers. Based on available information regarding peer companies, the following multipliers were calculated:

· price/revenue,

· price/net profit.

The use of these multipliers is due to the following reasons: analogue companies and the company being valued have the same access to credit resources and a similar taxation regime, based on this, the market capitalization / net profit multiplier was chosen, while the use of the market capitalization / revenue multiplier is determined by the specifics of the organization’s activities. Data regarding peer companies are presented in Table 9.

Table 9. Calculation of estimated multipliers

Based on the values of multipliers for similar companies, their value is selected in relation to the enterprise being valued.

Stage 3. Selecting the value of valuation multipliers

The choice of the multiplier value is the most difficult stage, requiring particularly careful justification. Since there are no identical companies, the range of values of the same multiplier for similar companies can be quite wide. In this regard, it is necessary to cut off extreme values and calculate the average value of the multiplier for a group of analogues.

Average multiple (price/revenue) =

(4+4+2,4)/3 = 3,47

Average multiplier value (price / net profit) = (8+11.4+9)/3=9.47

Stage 4. Determining the financial base of the company being valued

To ensure comparability of data, we will use indicators such as revenue and net profit as the financial base of the company being evaluated. The values of these indicators for 2009 amount to 208,267 thousand rubles. and 334,494 thousand rubles. respectively.

Stage 5. Determining the final cost

Market capitalization of the enterprise by price / revenue multiplier = Price / revenue multiplier Revenue of the company being valued = 3.47 208267 = 722686.49 thousand rubles.

Market capitalization of the enterprise according to the price multiplier / net profit = Price multiplier / net profit Net profit of the company being valued = 9.47 34494 = 326658.18 thousand rubles.

To determine the final value of the cost, it is necessary to assign certain specific weights to each of the multipliers, in accordance with their significance.

When valuing enterprises, the price/net profit multiplier is of greatest importance; the price/revenue multiplier is used quite rarely, so it is usually assigned a lower share compared to the first...

The essence, necessity and organization of valuation activities in a market economy

Valuation of an enterprise (business) is the calculation and justification of the value of an enterprise as of a certain date. Valuation of a business, like any other property, is a purposeful, orderly process of determining the value of an object in monetary terms, taking into account the factors influencing it at a specific point in time in a specific market.

The result of the assessment is the calculated value of the market value or its modification. Market value is “the most probable price at which a given valuation object can be alienated on the open market, when the parties to the transaction act reasonably, having all the necessary information, and no extraordinary circumstances are reflected in the value of the transaction price...” (Federal Law on Valuation activities in Russian Federation. Chapter 1, page 3).

When determining the value, the appraiser tries to take into account the full influence of the main factors, which include the income generated by the object being valued, the risks accompanying the receipt of this income, the average market level of profitability for similar objects, the characteristic features of the object being valued, including the composition and structure of assets and liabilities ( or constituent elements), market conditions, the current situation in the industry and in the economy as a whole.

A distinctive feature of the market valuation of value and at the same time a mandatory requirement is its binding to a specific date.

In our country, the assessment of the value of various objects, including businesses, is carried out on the basis of the law on valuation activities and standards by independent appraisers who have undergone special professional training.

Objects and subjects of valuation

The assessment process presupposes the existence of an assessed object and an assessed subject.

The subject of valuation activities are, on the one hand, professional appraisers with special knowledge and practical skills, and on the other hand, consumers of their services, customers.

The role of professional appraisers is legal entities(appraisal firms, appraisal departments of audit and other companies) and individuals (individual entrepreneurs). In any case, their activities are regulated by the Federal Law on Valuation Activities in the Russian Federation.

Professional appraisers work on orders received from government agencies, enterprises, banks, investment and insurance institutions, as well as citizens.

In their activities they are guided by legal, professional and ethical standards.

The object of valuation is any property. In this case, not only various characteristics object, but also the rights vested in its owner.

IN Russian law on valuation activities, the objects of valuation include individual material objects (things): A set of things that constitute the property of a person, including property of a certain type (movable or immovable, including enterprises); ownership and other real rights to property or individual items from the property, rights of acquisition, obligations (debts); work, services, information; other objects civil rights, in respect of which the legislation of the Russian Federation establishes the possibility of their participation in civil circulation.

When assessing a business, the object is an activity aimed at making a profit and carried out on the basis of the functioning of the property complex of the enterprise. An enterprise (organization) is the object of civil rights (Article 132 of the Civil Code), enters into economic circulation, and participates in business transactions. As a result, there is a need to estimate its value.

The property complex of an enterprise includes all types of property intended for the implementation of its goals: for carrying out economic activities and making a profit. When valuing a business, the appraiser evaluates the enterprise as a whole, determining the value of its equity capital.

Valuation purposes and types of value

As a rule, the purpose of the appraisal is to determine some type of estimated value necessary for the client to make an investment decision, to conclude a transaction, to make changes to the financial statements, etc. Various parties are interested in conducting assessment work, from government agencies to private individuals: control and audit bodies, management structures, credit organizations, insurance companies, tax firms and other organizations, private business owners, investors, etc.

Parties interested in carrying out appraisal work, seeking to realize their economic interests, determine the objectives of the appraisal.

Business assessment is carried out for the purposes of:

Increasing the efficiency of current management of an enterprise or company;

Purchase and sale of shares, bonds of enterprises on the stock market;

Making an informed investment decision;

Purchase and sale of an enterprise by its owner in whole or in parts.

Establishing the share of co-owners in the event of signing or termination of an agreement or in the event of the death of one of the partners;

Enterprise restructuring. The liquidation of an enterprise, merger, acquisition or separation of independent enterprises from the holding requires its market assessment, since it is necessary to determine the purchase price or repurchase of shares, the conversion price or the amount of the premium paid to the shareholders of the acquired company.

Development of an enterprise development plan. In the process of strategic planning, it is important to assess the future income of the company, the degree of its sustainability and the value of its image;

Determining the creditworthiness of an enterprise and the value of collateral for lending. In this case, an assessment is required due to the fact that the value of assets according to financial statements may differ sharply from their market value;

Insurance, in the process of which there is a need to determine the value of assets in anticipation of losses;

Taxation. When determining the tax base, it is necessary to carry out an objective assessment of the enterprise’s income and its property;

Making informed management decisions. Inflation distorts the financial statements of an enterprise, so periodic revaluation of property by independent appraisers makes it possible to increase realism financial statements, which is the basis for making financial decisions;

Implementation of an investment project for business development. In this case, to justify it, it is necessary to know the initial value of the enterprise as a whole, its equity capital, assets, and business.

Depending on the purpose of the assessment and the number and selection of factors taken into account, the appraiser calculates either the market value or a type of value other than the market value.

The valuation standards, mandatory for use by subjects of valuation activities in Russia, define 10 types of value, including:

Market price:

Value of an appraisal object with a limited market:

Cost of replacement of the assessed object:

The cost of reproducing the evaluation object:

The value of the property under current use:

Investment cost;

The value of the object for tax purposes:

Liquidation value:

Disposal cost:

Special price.

Principles of assessment

Three groups of interrelated evaluation principles can be distinguished:

Principles based on the ideas of the owner;

Principles related to the operation of property;

Principles determined by the action of the market environment.

Let's consider the first group of principles.

The principle of utility is that the more an enterprise is able to satisfy the owner's needs, the higher its value.

One more methodological principle for assessing the value of an enterprise can be identified - the principle of substitution. It is defined as follows: the maximum value of an enterprise is determined by the lowest price at which another item with equivalent utility can be purchased.

From the principle of utility follows another principle of evaluation - the principle of expectation, or anticipation. The expectation principle is to determine the present value of the income or other benefits that may be received in the future from owning a given enterprise.

Second group of principles valuations are conditioned by the exploitation of the property and are related to the representation of producers.

The principle of contribution, which boils down to the following: the inclusion of any additional asset in the enterprise system is economically feasible if the resulting increase in the value of the enterprise is greater than the cost of acquiring this asset.

The principle of residual productivity. For example, a business will be valued higher if the land is capable of generating higher income or if its location allows it to minimize costs. The residual productivity of a land plot is defined as the net income after management, labor and capital operating costs have been paid.

As resources are added to the main factors of production, net return tends to increase faster than the rate of growth of costs, but after reaching a certain point, total return, although growing, is at a slowing pace. This slowdown occurs until the increase in value becomes less than the cost of the added resources. This principle is based on the marginal revenue theory and is called the marginal productivity principle.

When assessing the value of an enterprise, it is necessary to take into account the principle of balance (proportionality), according to which the maximum income from an enterprise can be obtained by observing the optimal values of production factors.

Third group of principles directly determined by the action of the market environment.

The principle of conformity, according to which enterprises that do not meet market requirements in terms of production equipment, technology, profitability level, etc., are likely to be rated below average.

Associated with the principle of correspondence are the principles of regression and progression. Regression occurs when an enterprise is characterized by improvements that are excessive in relation to given market conditions. The market price of such an enterprise will probably not reflect its real value and will be lower than the real costs of its formation. Progression occurs when, as a result of the operation of neighboring facilities, such as facilities that provide improved infrastructure, the market price of a given business is likely to be higher than its value.

The value of an enterprise and its property largely depends on the state of the external environment, the degree of political and economic stability in the country. Therefore, when assessing an enterprise, it is necessary to take into account the principle of dependence on the external environment.

Changing political, economic and social forces affect market conditions and price levels. The value of the enterprise changes. Therefore, the valuation of an enterprise must be carried out at a certain date. This is the essence of the principle of change in value.

The principle of economic division states that property rights should be divided and combined in such a way as to increase the total value of the property.

The result of the analysis is the determination of the best and most effective use of the property, in other words, the determination of the direction of use of the enterprise's property is legally, technically feasible and provides the owner with the maximum value of the property being valued. This is the principle of highest and best use.

Enterprise valuation

In market conditions, industrial enterprises, like real estate, have a market value. In this case, the enterprise is considered as a single whole (product), which includes all types of property that operate within its organizational and legal framework when carrying out business activities, and the rights to this property. In accordance with Article 132 of the Civil Code of the Russian Federation, “An enterprise as an object is recognized as a property complex used to carry out business activities. The enterprise as a whole as a property complex is recognized as real estate.”

The enterprise value assessment is carried out in accordance with a specific task.

The most typical cases when there is a need to determine the value of an enterprise:

1) sale of the enterprise;

2) sale of part of the property by the enterprise (land plots, buildings, structures);

3) reorganization (merger, division, takeover, etc.) and liquidation of the enterprise, carried out both by decision of its owners and by decision of the arbitration court;

4) purchase and sale of enterprise shares on the securities market (purchase
joint-stock enterprise or part thereof);

5) purchase and sale of a share (contribution) in the authorized capital of a partnership or
limited liability companies (share is valued in monetary units);

6) transfer of the enterprise for rent. Cost estimation is important for purpose
rent and subsequent repurchase by the tenant (if this
provided for in the lease agreement);

7) implementation of an investment project for the development of an enterprise, when for
to justify it, it is necessary to know the initial cost of the enterprise;

8) obtaining a loan secured by the property of the enterprise (mortgage);

9) insurance of enterprise property;

10) determination of the tax base for calculating property tax;
11) revaluation of fixed assets.

The value of an enterprise is assessed by a specialist - an appraiser, using one or another technique. The appraiser needs to know the task for which the assessment is being made, only then will he be able to correctly select the necessary methodological tools.

Thus, the validity and reliability of the assessment of the value of a property complex largely depends on how correctly the area of use of the assessment is defined: purchase and sale, obtaining a loan, insurance, taxation, etc.

The purpose of the appraisal is to calculate and justify the market value of the enterprise.

When determining the value of an enterprise (property), it is important to distinguish between the concepts cost, expenses and price.

Price- a measure of how much a buyer (investor) will be willing to pay for the property being valued. Expenses- a measure of the costs required to create a property similar to the one being valued. These costs may not differ from the amount that a potential buyer would be willing to pay. Depending on a number of factors, including the needs of the buyer, the availability of comparable properties and the activity of other buyers, these costs may be higher or lower than the value at the valuation date.

There are four main conditions under which value arises: demand, utility, scarcity and transferability of ownership.

The same property may have different values depending on the purpose of the assessment.

Thus, for example, the assessment of value for fire insurance purposes is different from the assessment of value for mortgage lending purposes. In the first case, the value is determined by the costs of restoring elements of structures exposed to corresponding risks, and in the second, by the most likely price at which the object can be sold on the market in the event of termination of payments on the mortgage loan.

In practice, the following main types of cost are used.

Reasonable market value- the price typical for a given type of property in a competitive and open market. It assumes free competition when both the buyer and the seller act economically rationally and consciously, having the necessary information and not experiencing any external coercion in the transaction. This value is used in cases related to the alienation and transfer of property rights. In practice, the prices of specific transactions differ from the justified market value under the influence of such factors as special financing conditions, forced circumstances of purchase and sale, insufficient information of the parties, market distortion, sales under pressure, etc. An example of non-market value is the normatively calculated value.

Standard calculated cost- the cost of the property complex, calculated on the basis of methods and standards approved by the relevant governing bodies. In this case, uniform scales of standards (rates, coefficients, unit prices) are applied for the types of property complexes under consideration. An example of a normatively calculated value is the taxable value of an enterprise’s property. The tax base for calculating the property tax of an enterprise is the average annual residual value of fixed assets, intangible assets, inventories and costs. To calculate the taxable value, the balances reflected in the balance sheet assets of the corresponding property accounts of the accounting enterprise are taken. Another example of a normatively calculated value is determining the value of a land plot for calculating land tax. There are approved tax rates in rubles per square meter and adjustment factors that take into account the various characteristics of land or plots.

From the point of view of the accounting system, there are book value, subdivided into original, restorative And residual. (discussed above).

Depending on the order of assessment, there are cost of reproduction And replacement cost.

Replacement cost is the current cost of producing a similar property that is equivalent in utility to the property being valued.

There are different values of the property complex, still functioning, And liquidation price.

The cost of a property complex that continues to function is the cost of such an object of sale and purchase, which after the transaction will continue to function and generate income.

Liquidation value is the price that the owner would have to accept if the property were to be sold in less than what is reasonably acceptable to the market. An assessment of the liquidation value of an enterprise takes place, for example, during its forced liquidation due to bankruptcy and an open sale at auction.

Depending on the valuation situation, several types of value are also distinguished: investment, consumer, insurance, recycling.

Investment value is the cost of a property complex, if it is considered as an investment contribution to the implementation of any investment project. Unlike market value, investment value is more specific and associated with a specific project and its investor. Investment value is used when implementing reorganization measures and justifying investment projects.

Use value (cost in use). It reflects the value, or importance, of a property to a particular owner, who may have no intention of putting it on the open market. Value in use is based on the efficiency of its use (in the form of income, utility, amenities).

Cost in use does not necessarily reflect market value. Information about use value is necessary when it is necessary to compare the property complex being assessed with analogues of different quality and usefulness.

Insurable value is the market value of the object, determined for insurance purposes and reflected in the insurance contract (policy). The insurance value is calculated element by element, which is necessary to assess insurance compensation. Typically, the insured value is determined as replacement cost, since after an insured event the policyholder has to restore his property by purchasing new one.

Recycling value is the cost of recycled material assets that have reached a limiting state due to complete wear and tear or an emergency event and have lost their original usefulness. Recycling value is the secondary cost of the mass of materials that make up the valued object.

From this article you will learn:

What is company value and why is it needed?

What types of company value are there?

How to calculate the value of a company

How to quickly calculate the value of a company

What are the features of company value management?

How to increase company value

A business exists not only to receive funds for the goods or services for which it was created. Business is also an investment. Many entrepreneurs make money by organizing and launching new companies with the aim of further selling them. Although this is far from the only reason for selling a business. When a company goes bankrupt or cannot solve its problems on its own, there is often a need to assess the value of the company before selling it. In this article we will talk about how to understand everything related to the value of your business and avoid difficulties.

Why is it necessary to know the value of a company?

Now the overwhelming majority of companies in Russia do not consider assessing the value of a company to be something necessary, and their owners often do not see the point in this until the business reaches high speeds and the public arena. Until then, the assessment is perceived as a reason for the owner’s personal pride.
There are actually about twenty economic goals for calculating the value of a company, but there are only three most important ones:

This provides objective data on the state of the business and the effectiveness of the management apparatus in it. By reacting to them, owners can always correct course in time.
It is impossible to approach investors for additional cash injections without information about the real value of the company, otherwise you risk not getting what you came for.
Valuation allows you to take into account assets that arose during the economic activity of the company in an extremely correct and competent manner.

Of course, assessing the value is necessary not only for buying or selling a ready-made business. This indicator is important for strategic management company. A clear understanding of the value of your company will also be required when issuing securities, shares and entering the stock market. It is also significant that no investor will agree to invest their money where the company’s value has not been assessed.
Enterprise business valuation (business valuation)- nothing more than determining the value of the company as non-current and current assets that can bring profit to the owners.

When conducting an assessment examination It is necessary to estimate the value of the company's assets:

real estate
equipment and machines,
stocks in warehouses,
all intangible assets,
financial investments.

Business is an investment product. Any investment in a company is made only with a long-term view of returning funds with a profit. Since quite a lot of time passes between investments and income in business, to determine the real value of a company, a specialist analyzes its activities over a long period and separately evaluates:

past, existing and future income,
efficiency of the entire operation of the enterprise,
business prospects,
competition in the market.

Once this data is obtained, the company being evaluated is compared with other similar firms. Only a comprehensive analysis helps to calculate the real value of a company.

Valuation of an enterprise or company is the process of determining the maximum probable price of a business as a product when it is sold to other owners. Moreover, any enterprise can be sold either entirely or in parts. The company, as the property of its owner, can be insured, bequeathed or used as collateral.

What are the different types of company value?

The activities of the appraiser are regulated by the federal standard “Purpose of valuation and types of value”(FSO No. 2), which defines several main types of value of any valuation object:

Market price.

The market value of the property being valued, for example a business, is the most likely price at which it can be sold on the day of valuation under the following conditions: the alienation takes place on an open market with existing competition, the participants in the transaction act reasonably and have complete information about the subject of sale, and its price is not affected by any force majeure circumstances.
The market value of the company is required in the following cases:

when the company’s property or the enterprise itself is seized for government needs;
when the price of placed shares that the company buys by decision of the meeting of shareholders or the supervisory board is determined;
when you need to determine the value of a company acting as collateral, for example in a mortgage;
when the size of the non-monetary part of the company’s authorized capital is determined;
when the owner goes through bankruptcy proceedings;
when it is necessary to determine the amount of property received free of charge.

The market value of a company is used in all situations where tax issues, both federal and local, are resolved.
It is precisely this type of value that is always determined in purchase and sale transactions of a business or any part of it, since market value is the most objective indicator and does not depend on the wishes of the participants in the process, it corresponds to the real economic situation.

Investment cost– the value of a company that is related to the profitability of the enterprise for a particular investor under existing conditions.

This type of cost depends on personal investment requirements. Every investor invests his money in a business with the goal of making a profit in excess of the amount of invested capital, and not just the return of this “debt”. So the investment value of a company is calculated based on the expected income of the investor and the capitalization rate of these investments. This type of company value must be calculated when buying and selling a business, merging, or acquiring companies.

Liquidation value.

This cost option is calculated in a situation where the company’s work is expected to end for some reason (for example, reorganization, bankruptcy or division of the company’s property). When determining the liquidation value of a company, they find the most likely price at which the company can be sold in the shortest possible period of exposure, provided that the owner of the object of sale is forced to make a deal to alienate his property.

Cadastral value.

This is the market value approved and established by legislation in the field of cadastral valuation of real estate. It is this indicator that mass valuation methods should arrive at in the case of the cadastral value of an object. This type of value is calculated most often for property tax purposes.

What documents are needed to carry out an assessment of the company's value?

Duplicates or copies of the constituent documents of the enterprise.
Documents on the inventory of company property.
Written confirmation of the company structure and types of its economic activities.
For joint stock companies, duplicate reports on the issue of securities and copies of prospectuses will be required.
Documentation on fixed assets.
If there is real estate for rent, then you need to provide copies of the contracts.
To assess the value of a company, financial statements for 3-5 years are required - about all profits and losses of the business.
The final conclusion of the audit, if it was carried out at the enterprise.
A detailed list of all assets: tangible and intangible, in shares, bills, etc.
Decoding of receivables and payables.
If the company has subsidiaries, then it is necessary to collect information about them and provide financial documentation for them.
A ready-made business development plan for the next 3-5 years, containing potential gross revenue, investments, expenses and calculation of net profit in each next year.

This is a preliminary list of documents that the appraiser will need to conduct an examination of the company’s value, however, it can be shortened or supplemented at the request of the specialist.

How to find out the value of a company

Obviously, one of the most objective indicators of the performance of an existing business is its cost. It makes it possible to calculate the price at which a company can be sold on the open market in a competitive environment, or to predict the future value of the company's benefits. The question of how a company's value is assessed is a serious one. practical problem of high importance for any entrepreneur.
To obtain an adequate assessment, first of all it is worth define the main goal cost calculation procedures. The most likely options are:

Determining the value of the company was required to complete certain legal actions. In this case, they turn to a licensed independent appraiser, who draws up his conclusion in the “Evaluation Report”, regulated by Federal Law No. 135.
You need to find out how much your business is really worth on the market; in this situation, the official “Valuation Report” will no longer be needed.

The fundamental difference when carrying out these procedures is not the quality of the appraiser’s work, but the cost of services and the form of the conclusion. In the first case, the specialist is obliged to comply with the requirements of the current legislation regulating his licensed activities, and usually these requirements significantly increase the price for the work.
In the second case, you will need to independently develop and clearly formulate a task for the appraiser, listing all the procedures you are interested in, factors of the company’s value and parts of the business that are subject to examination. So, as a result, you will receive only the information you need.
Business valuation means calculating its value as a property complex, which leads to profit for the owner.
To calculate the value of a company, you need to take into account all its assets, intangible and tangible: real estate, technical equipment, cars, warehouse stocks, financial injections. Next, past and potential income, enterprise development plans, competition and the economic environment must be calculated. At the end of the comprehensive examination, the data is compared with information about similar companies, and only after this the real value of the company is formed.
For the above calculations, it is applied three methods:

profitable,
expensive,
comparative.

However, in fact, there are so many situations that they are segmented into classes, each of which requires its own approach and corresponding method.
To use the most appropriate calculation method, you need to first analyze the situation, the circumstances at the time of assessment and other conditions.
For some types of business, the valuation of the company is usually carried out based on commercial potential.
For example, in the case of the hotel business, we are dealing with guests as a source of income for the company. In a method called profitable, it is this source that will be compared with operating expenses to assess the profitability of the enterprise. This method is based on discounting the profit from renting out the company's property. Finally, after the assessment, both the cost of buildings and land are included.
The company's value is assessed using cost method, when we are talking about a business that is not subject to purchase and sale, as is the case with government agencies or clinics. This assessment takes into account the cost of constructing the building, depreciation and wear and tear of the property.
Comparative method used when there is a market for such a business. This is a market-based method of assessing value, which is based on an analysis of similar properties that have already been sold in other markets.
Hypothetically, all of the above approaches must give the same value. But in fact, market conditions are not ideal, businesses are often inefficient, and information is insufficient and imperfect.
Determining the value of a company in each of these approaches allows use of various assessment methods:

For the income approach it is:

capitalization method, which is used in the case of established companies that managed to accumulate assets in previous periods;
method of discounting cash flow for a young business that will develop in the future. Used when the company has a potentially promising product.

For the cost approach, the following are used:

the net asset method – when it comes to reducing production volumes or closing a business on the initiative of the investor;
and the company's liquidation value method.

For the comparative approach these are the methods:

transactions, which is used in situations similar to the conditions for applying the net asset method;
industry coefficients that evaluate operating enterprises that do not plan to close in the period after the examination;
capital market. This method is also intended for “living” companies.

Please note that the last three methods are only valid if there is a similar business that matches the type of the valuation object, otherwise the analysis will not be indicative. Next, we’ll briefly talk about the use of these methods by which the value of a company is calculated.

If you require an estimate of cost for the forecast period, it will be determined discounted cash flow method. To bring potential income to current value, a discount rate is used.
In this scenario, the company’s value is calculated according to the following formula:

P = CFt/(1 + I)^t,

Where P- price,
I- discount rate,
CFt- cash flow,
t– this is the number of the time period during which the assessment occurs.
Do not forget to take into account that in the period after the forecast, your company will continue to operate, which means that future prospects will determine a wide variety of options - from explosive growth of the enterprise to bankruptcy.
It happens that calculations are carried out using Gordon model, implying stable and systematic growth in the company’s sales and profits, as well as equal volumes of capital investments and depreciation amounts.
For this situation, the following applies: formula:

P = СF (t + 1)/(I− g),

wherein CF(t+1) is the cash flow in the first year following the forecast period,
I- discount rate,
g– flow growth rate.
The Gordon model is most convenient to use when calculating the value of a company if the object of assessment is a large business with a large market capacity, stable supplies, production and sales, located in favorable economic conditions.
If bankruptcy of the enterprise and further sale of property is predicted, then to calculate the cost this formula is required:

P = (1 −L av) × (A −O) −P liquid,

Where P– company value,
P liquid– costs of its liquidation (such as insurance, services of a valuation expert, taxes, employee benefits and management costs),
ABOUT– amount of liabilities,
L avg– discount provided due to the urgency of liquidation,
A– the total value of all the company’s assets after their revaluation.
The results of calculations using the current formula are also influenced by the location of the enterprise, the quality of assets, and the situation on the market as a whole.

Quickly calculate the value of a company using an express assessment

Express valuation model, which we will talk about in more detail, is based on the method of discounting cash flow for an enterprise that we already know. For convenience, we abbreviate this term as DDP method For the company. These concepts, as we remember, are used in the income approach to valuing a company.
This approach is divided into the following most common ones: assessment methods:

method of calculating economic profit;
DDP method;
real options method.

According to a lot of information, both direct and indirect, the most adequate method for determining the value of a company is the DCF method. Provided that we choose the display of behavior as a criterion for the effectiveness and expediency of the method stock market(for example, the capitalization of an enterprise according to its data).
Important, that The DDP method has several varieties, corresponding to different purposes and differing in techniques for calculating both the flow itself and the discount rate. We list the most popular varieties:

DCF for the equity capital of a joint stock company (Free Cash Flow to Equity);
discounting of DP for the company (Free Cash Flow to Firm);
and another type of cash flow discounting - for capital (Capital Cash Flow);
Adjusted Present Value.

At the same time, the entire DCF method for an enterprise is based on this formula:

In which the indexes i And j the serial numbers of periods (years) are indicated,
EV(Enterprise Value) – the value of the company,
D(Debt) – the cost of short-term and long-term debt,
FCFF stands for "free cash flow for the firm", excluding debt financing, remaining after taxes (or operating cash flow),
E(Equity) is the amount of the organization’s own capital,
WACC(Weighted Average Cost of Capital) is translated as “weighted average cost of capital”, which is calculated as follows:

r d– the cost of the company’s capital, which is borrowed,
t– income tax rate,
r e– the amount of equity capital.
When calculating the value of companies in Russia, it is often the following simplifications are introduced:

Weighted average cost of capital WACC can be denoted as a discount rate – r. This move does not destroy the adequacy of the formulas, since for business in Russia the calculation WACC is not always possible. Because of this, analysts resort to other calculation options.
And let's assume that the variable r is constant throughout all years. This is due to the fact that determining this indicator in Russia even for one specific year causes great problems and leads to methodological stupor. So, if we do not introduce such a simplification, then we will unreasonably complicate the entire model for express assessment of the company’s value.

As a result of all the above transformations we get the expression kind

Factors of company value within the described valuation model are any scalar quantities and vectors that affect the value of the enterprise in calculations.
Note that forecasting free cash flow for a firm for every year of an indefinite period is quite difficult and practically meaningless. This happens because the meaning of the terms with the index i too small because of the denominator, and the imperfect calculation of the numerator has almost no effect on the final result of this calculation. For this reason, the following popular practice is used an approach:

the company's value is divided into the forecast period and the post-forecast period;
in the first period, cost factors are predicted based on assumptions and plans for the further development of the enterprise;
in the post-forecast period of time, cash flows are estimated based on the hypothesis of a fixed rate of their growth throughout the entire period.

Valuing a company: common mistakes

Anyone who has encountered valuation services knows perfectly well that exactly how they calculate it significantly affects the market value of the same business being valued. The resulting amounts may vary several times. Such results often lead to serious financial damage, conflicts and even litigation.
Let's call There are several main reasons for variations in the value of the property being assessed:

Methodological errors.

Inadequate value is obtained as a result of calculation errors, as well as methodological inconsistencies in assessing the value of the company. Carefully study the experience and professional level of the appraiser.

Intentional misrepresentation of value.

Unfortunately, to this day, a certain share of the market for assessment services for various objects is occupied by “custom” examinations. That is, the real cost can be underestimated or overestimated in the expert’s opinion at the request of the customer.

Subjective opinion of an expert.

Although the assessment procedure is based on specific values and economically sound assumptions, the process remains largely subjective. So the outcome may depend on personal view an appraiser for the future of the market, financial capabilities and other factors of the company’s value. Deciding how to treat economic conditions, has to be accepted by the expert conducting the analysis himself. And he will not always be able to predict even the most seemingly predictable things. Judge for yourself: who could have predicted the development of the oil market at 66 dollars per barrel two or three years ago, and not at 25 or even the optimistic 30 dollars per unit?

Wrong statement of the problem.

The size of the final cost, which will be obtained as a result of complex analysis and calculations, largely depends on the correct formulation of the problem, on the accuracy and adequacy of the choice of the type of cost, and on the final goals for which the entire procedure is carried out. It is not surprising that the same security can be valued at amounts that differ by 20 or even 50%. This is influenced, for example, by whether it is a minority or majority-owned company. Depending on the purpose of determining the value of the company, the calculation process is carried out differently.

Distortion of official reports.

The management of some enterprises deliberately makes a discrepancy between real and official reporting. And distortion of this factor of the company’s value inevitably leads to incorrect assessment results. This problem is even more aggravated in the case when it is necessary to make payments for a business whose share is pledged when receiving loan funds. Banks prefer to work not with management reporting, but only with official ones, which significantly changes the assessment indicators.

Legislative shortcomings.

Nowadays, experts in the field of valuation turn to three main methods of this procedure - cost, profit and comparative. Official valuation standards state that the final calculation must take into account the results obtained in all three approaches. But these methods do not always correspond to the objectives of the examination.
List of factors to pay attention to, in order to clarify their meaning and receive comments from an expert assessing the value of the company:

The cash flow forecast made based on the results of the analysis and the discount rate reflecting the costs of attracting third-party capital – with the income approach.
The cost of all intangible assets (including those that are not included in this category according to the legislation of the Russian Federation) – with a cost approach.
The adequacy of multipliers (price coefficients) and the comparability of the analogue company with which the comparison is being made - with a comparative approach.

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