| Abstract [eng] |
Final work of Master Studies, 72 pages, 25 figures, 14 tables, 45 references, 12 appendices, in Lithuanian. The main aim of this master's work is to determine whether the estimation of the value of the company, which is mainly used by the owners of Lithuanian private enterprises, based on the data from the balance sheet, or, using the language of appraisers, – performing the book value valuation, reflects the actual value of the company. The work consists of three parts: theoretical justification and legal regulation of business assessment, methodology for assessment of a private limited liability company, discussion and interpretation of the results of research, conclusions and recommendations. The literature analysis provides an overview of the substance matter of the assessment and its methodologies, the objectives and principles of the evaluation, the most popular assessment methods and their application, and the legal regulation of the evaluation. In the part of research methodology, following the theoretical and legal aspects analysed in the first part of the work, the reasons for the methods selected/methods for determining the value of UAB X company are presented. Indicators and variables and the specifics of their calculation are required for the use of the selected methods. The analysis of the financial data carried out in the third part has revealed that the operation of the private limited company under assessment is profitable, the risk of bankruptcy, according to the Z-Altman model, is very low. The company's operating income forecasting was performed using qualitative and quantitative forecasting methods. The method of linear trend function was used for quantitative forecasting. The value of the business determined using three different valuation methods has shown that the value of the company varies depending on the method chosen. The value of the company obtained by discounted cash flow method is 9.702 million euro, by the book value method – 2.503 million euro, and using the capitalized cash flow method – 8.584 million euro. After evaluating the difference of results, it has been found that the valuation of the business using the book value method does not reflect the actual value of the company. Therefore, the valuation method often used by private business owners should be considered unreliable and inappropriate for determining the value of the business. |
