| Issue |
SHS Web Conf.
Volume 91, 2021
Innovative Economic Symposium 2020 – Stable Development in Unstable World (IES2020)
|
|
|---|---|---|
| Article Number | 01042 | |
| Number of page(s) | 9 | |
| Section | Stable Development in Unstable World | |
| DOI | https://doi.org/10.1051/shsconf/20219101042 | |
| Published online | 14 January 2021 | |
The applicability of FCFF method evaluating an enterprise of Real Estate segment
Institute of Technology and Business, School of Expertness and Valuation, Okružní 517/10, 37001 České Budějovice, Czech Republic
* Corresponding author: vrbka@mail.vstecb.cz
The article aims at evaluating a specific enterprise of the Real Estate segment using FCFF (Free Cash Flow to Firm) method. This technique determines the company’s value through free cash flows. Enterprise valuation presents a distinct discipline requiring appraiser’s deep understanding not only of the evaluated enterprise but also other external decisive influences. The theoretical part focuses on calculation procedures using The CAPM (Capital Asset Pricing Model) model quantifying separate variables that determine discount rates. The suggested technique deals with specific financial data of the company and is applicable in evaluating small and medium-sized enterprises.
Key words: enterprise valuation / FCFF / CAPM / cash flow / real estate / risk rate
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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