Original scientific paper

https://doi.org/10.2478/zireb-2018-0017

Income Approach to Business Valuation: Russian Perspective

Olga Almabekova orcid.org/0000-0002-4291-990X ; Siberian Federal University, Krasnoyarsk, Russia
Roman Kuzmich orcid.org/0000-0001-6017-1483
Elena Antosik orcid.org/0000-0001-7609-4419

Abstract

In crisis times, making the choice of a company to invest becomes challenging for a potential investor due to the uncertainty of business environment and dim future prospects. As for industries, the decision is often made in favor of the companies satisfying consumers’ basic needs. The value of a business is known to be the main indicator of the company’s reliability and investment attractiveness. The article provides substantiation of the reliability of income approach for business valuation in the time of economic crisis in Russia and presents an algorithm for implementing the cash flow discounting method within the framework of income approach using the case for a middle-sized construction company. The choice of the object for the research is due to the investment attractiveness of the construction industry in a big industrial city of Krasnoyarsk in the North East of Russia.

Keywords

income approach; business value; investment

Hrčak ID:

209088

URI

https://hrcak.srce.hr/209088

Publication date:

21.11.2018.

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