Future prospects of company valuation

Abstract

This paper examines the impact of using qualitative and quantitative beta in the overall value of the company. The company analyzed within the case study is private (nonpublic) company. Valuation of the private companies is an important element on price signals that are delivered in the market. Determining intrinsic value of private (nonpublic) companies is essential evidence, not just for mergers and acquisition, but also for banks, suppliers, customers and employees on the current and future outlook of the company. There are a lot of unclear inputs standing on the general theoretical concepts and practical applications that lie within the calculation of non-public companies. The results of the study shed light on a small part of the overall complex issue of the valuation process, where the valuation of the company with qualitative beta shows entirely dissimilar outcomes from the valuation of the company with accounting beta.