Analytical Capabilities of Modern Information Systems as Part of the Income-Based Business Valuation Method

Журнал «Дайджест-Финансы»
т. 23, вып. 1, март 2018

Получена: 30.10.2017

Получена в доработанном виде: 01.12.2017

Одобрена: 04.12.2017

Доступна онлайн: 30.03.2018


Коды JEL: G32

Страницы: 41–54


Bogatyrev S.Yu. Financial University under Government of Russian Federation, Moscow, Russian Federation 

ORCID id: отсутствует
SPIN-код: отсутствует

Importance The research focuses on new software and information tools for valuation. The research deals with aspects of business valuation based on the income-based valuation method.
Objectives I scrutinize aspects of adjusting the valuation framework to new analytical capabilities and demonstrate distinctive scope of information and analytical data on ratios and metrics stored in such systems and available for financial analysts.
Methods The research is based on the DCF method from perspectives of income-based business valuation.
Results I analyze capabilities of software and technological tools of modern information systems and measure the value of different items using the DCF method through various models. The article displays positive aspects of analytical tools of the information systems and identifies what restrictions and limits they impose on a financial analyst. The article unveils the limited nature of data resources in foreign information systems and indicates the Russian alternative information resources for improving the use of the DCF-based models.
Conclusions and Relevance Financial analysts may benefit from new capabilities of model information systems. They streamline primary data collection and processing for business valuation purposes and standardization of financial reporting. The article outlines the future of new information resources and their use in business valuation. The findings may prove useful in financial analysis and financial reporting.

Ключевые слова: income-based method, discounting, cash flow, discount rate, information system

Список литературы:

  1. Gray R.P., Kester R.B., Minor B.H. Working Capital Considerations for Business Valuations. Financial Valuation and Litigation Expert, 2017, iss. 68, pp. 16–19.
  2. Bingham B.B. Valuation Professionals: Be Aware of New Rules; Speak Your Mind. Financial Valuation and Litigation Expert, 2013, iss. 45, pp. 21–22. URL: http://www.valuationproducts.com/files/Valuation_of_Special_Use_Properties.pdf
  3. Hitchner J. ‘LinkedOut’. A Response to a Business Valuation Standards Discussion. Financial Valuation and Litigation Expert, December 2012/January 2013, iss. 40, pp. 1–6. URL: http://www.valuationproducts.com/files/Issue-40_LInked-Out.pdf
  4. Burkert R.P., Dohmeyer B. Mean Reversion Model to Adjust Excess Compensation. Financial Valuation and Litigation Expert, December 2012/January 2013, iss. 40, pp. 9–12. URL: http://www.valuationproducts.com/files/Issue-40-Burkert-Article.pdf
  5. Chaffee D.B.H. Option Pricing as a Proxy for Discount for Lack of Marketability in Private Company Valuations. Business Valuation Review, 1993, vol. 12, iss. 4, pp. 182–188. URL: https://doi.org/10.5791/0882-2875-12.4.182
  6. Longstaff F.A. How Much Can Marketability Affect Security Values? The Journal of Finance, 1995, vol. 50, iss. 5, pp. 1767–1774. URL: https://doi.org/10.1111/j.1540-6261.1995.tb05197.x
  7. Finnerty J.D. The Impact of Transfer Restrictions on Stock Prices. Financial Management Association International, 2008 FMA European Conference (revised November 2007 and corrected October 2009). Fordham University, 2003. pp. 15–21.
  8. Ji-Fan Ren S., Wamba S.F., Akter Sh. et al. Modelling Quality Dynamics, Business Value and Firm Performance in a Big Data Analytics Environment. International Journal of Production Research, 2017, vol. 55, iss. 17, pp. 5011–5026. URL: https://doi.org/10.1080/00207543.2016.1154209
  9. Greene D. Valuations in Corporate Takeovers and Financial Constraints on Private Targets. Journal of Financial & Quantitative Analysis, 2017, vol. 52, iss. 4, pp. 1343–1373. URL: https://doi.org/10.1017/S0022109017000527
  10. Reilly R.F. DLOM in Valuation of Closely Held Company Securities in Family Law. American Journal of Family Law, 2017, vol. 31, iss. 1, pp. 34–50.
  11. Reilly R.F. The Asset-Based Approach to Business Valuation in Family Law (Part I of III). American Journal of Family Law, 2017, vol. 31, iss. 2, pp. 69–80.
  12. Kung-Cheng Ho, Shih-Cheng Lee, Chien-Ting Lin et al. A Comparative Analysis of Accounting-Based Valuation Models. Journal of Accounting, Auditing & Finance, 2017, vol. 32, iss. 4, pp. 561–575. URL: https://doi.org/10.1177/0148558X15623043
  13. Ali A., Hwang L.-S., Trombley M.A. Residual-Income-Based Valuation Predicts Future Stock Returns: Evidence on Mispricing vs. Risk Explanations. The Accounting Review, 2003, vol. 78, no. 2, pp. 377–396. URL: https://doi.org/10.2308/accr.2003.78.2.377
  14. Pae Jinhan, Yoon Sung-Soo. Determinants of Analysts' Cash Flow Forecast Accuracy. Journal of Accounting, Auditing & Finance, 2012, vol. 27, iss. 1, pp. 123–144. URL: https://doi.org/10.1177/0148558X11409148
  15. McIntosh W. Forecasting Cash Flows: Evidence from the Financial Literature. The Appraisal Journal, 1990, vol. 58, April, pp. 221–229.
  16. Lorek K.S., Willinger G.L. Multi-Step-Ahead Quarterly Cash-Flow Prediction Models. Accounting Horizons, 2011, vol. 25, iss. 1, pp. 71–86.
  17. Francis J.M. Deriving IRR Sets from Market Transactions. The Appraisal Journal, 1995, vol. 63, iss. 2. URL: http://www.freepatentsonline.com/article/Appraisal-Journal/17015352.html
  18. Hamilton C. Is It the Market Approach or the Income Approach? Financial Valuation and Litigation Expert, 2011, iss. 33, p. 15. URL: http://www.valuationproducts.com/files/Issue_33_Hamilton.pdf
  19. Bogatyrev S.Yu. Testing Behavioral Asset Pricing Models on Russian Financial Market. International Journal of Trade, Economics and Finance, 2014, vol. 5, iss. 1, pp. 48–51. URL: https://doi.org/10.7763/IJTEF.2014.V5.339
  20. Hitchner J. How to 'Rig' a Valuation: The Discount Rate. Financial Valuation and Litigation Expert, 2013, iss. 41, pp. 1–6.

Посмотреть другие статьи номера »


ISSN 2311-9438 (Online)
ISSN 2073-8005 (Print)

Свежий номер журнала

т. 23, вып. 1, март 2018

Другие номера журнала