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FINANCIAL STRATEGIES OF ENTERPRISE VALUE MANAGEMENT

Journal: The Journal CONTEMPORARY ECONOMY (Vol.2, No. 4)

Publication Date:

Authors : ;

Page : 131-140

Keywords : enterprise value; value-based management; financial diagnosis; cash-flow; investments; cost of capital.;

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Abstract

The fundamental purpose of business activity is to maximize enterprise value. In conditions of widening the market is constantly seeking the most rational and effective methods of organizing financial activity in order to maximize enterprise value. In the scientific research it has been established that the value of a company is determined to a large extent by changes in domestic financial environment. The article studies existing value management concepts and models, where the financial factor has a significant impact. There are highlighted five principles of enterprise value management: the basic model of Damodaran; model T. Copeland, J. Murrin and T. Koller; Walsh's classic model; Egherev's models and Mordashev. Each of these models allow to change enterprise value from various angles and define appropriate instruments of value creation. We believe that these models can be applied to achieve an express-diagnostic of enterprise value. The principle of maximizing enterprise value can be implemented by regularly monitoring financial indicators, to timely detect negative deviations impact and avoid them.

Last modified: 2018-02-17 00:30:11