Prethodno priopćenje

VALUATION OF GROWTH FIRMS: THEORETICAL MODELING

Damir Tokic ; University of Houston – Downtown

Sažetak

This study models the value of growth firms using the modified investment opportunities approach to valuation. The proposed model suggests that the value of a growth firm is function of: 1) profit margins, 2) investments in growth, and 3) the level of growth opportunity. Theoretical predictions suggest that the value is maximized when: 1) the growth opportunity exists and profitability multipliers are significant, 2) profit margins are high, and 3) the investment in growth is optimal.

Ključne riječi

growth firms; profit margins; growth opportunity; profitability multipliers

Hrčak ID:

222774

URI

https://hrcak.srce.hr/222774

Datum izdavanja:

2.6.2005.

Posjeta: 541 *