| Abstract [eng] |
The final master thesis examines the discounted cash flow business valuation method and its applicability under conditions of uncertainty. The research problem of the thesis is how to value a business using the discounted cash flow method in an environment of uncertainty. The objective of the thesis is to estimate “Novaturas” AB intrinsic value using the discounted cash flow method taking into account the uncertainty associated with the company’s business model. The tasks of the thesis include examination of scientific literature, creation of two valuation scenarios, analysis of “Novaturas” AB historical results, market research, calculation of the company’s business value in the two scenarios and presentation of the valuation results. Research methods applied in the thesis are the analysis of scientific literature, statistical methods, analysis of financial indicators, application of discounted cash flow method, capital asset pricing model, Monte Carlo simulation method and financial modelling. The research performed concluded that the “Novaturas” AB intrinsic equity value as of December 31, 2022, amounted to 21.6 million Euro. The main conclusion of the thesis is that the Monte Carlo simulation-based discounted cash flow valuation method allows to account for the uncertainty associated with a business and express it through the forecasted cash flows. In addition, the method helps to reduce subjectivity of an appraiser, and allows to gain additional insights in the valuation. |
