Keyword: «income approach»

In modern conditions, different approaches are used for enterprise valuation, in which certain methods can be allocated. To obtain accurate and reliable information regarding cost of an object, it is necessary to have clear understanding of advantages and disadvantages of chosen methods of enterprise valuation. The paper deals with income approach to assessment of business; enterprise value is determined by cash flows discounting.

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.

Determining the market value of real estate objects is a rather complicated and to a certain extent unique process, since it is almost impossible to find two absolutely identical objects. As a result, the justification and selection of the necessary methodological assessment tools is a very pressing task. The purpose of the work is to make a comparative analysis of existing approaches to assessing the value of real estate. The main results of the study: the theoretical foundations of real estate evaluation were studied, a comparative analysis of methodological approaches to real estate evaluation was made; the advantages and disadvantages were revealed, the conditions and limitations of the application of each of the approaches were substantiated.