Keyword: «discounted cash flows»

The article deals with the formation of the market value of an enterprise using a revenue approach. In modern conditions, the adoption of reasonable long-term management decisions is impossible without an adequate, real valuation of business value. The author reveals the methodology of a profitable approach to assessing the business as the most appropriate to the investment objectives of the owners and reflecting the main objective of the business. The article presents the features of valuation using the discounted cash flow method. The author expresses his point of view on the specifics of the application of individual assessment tools. The article reveals the main stages of the evaluation, its order and the indicators used, and concludes that the real market value of the company is obtained as a result of the assessment by the method studied. The discounted cash flow method is the most frequently used method for both formal valuation and business valuation for internal company purposes.