<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In crisis times, making the choice of a company to invest becomes challenging for a potential investor due to the uncertainty of business environment and dim future prospects. As for industries, the decision is often made in favor of the companies satisfying consumers’ basic needs. The value of a business is known to be the main indicator of the company’s reliability and investment attractiveness. The article provides substantiation of the reliability of income approach for business valuation in the time of economic crisis in Russia and presents an algorithm for implementing the cash flow discounting method within the framework of income approach using the case for a middle-sized construction company. The choice of the object for the research is due to the investment attractiveness of the construction industry in a big industrial city of Krasnoyarsk in the North East of Russia.</p></abstract>

In crisis times, making the choice of a company to invest becomes challenging for a potential investor due to the uncertainty of business environment and dim future prospects. As for industries, the decision is often made in favor of the companies satisfying consumers’ basic needs. The value of a business is known to be the main indicator of the company’s reliability and investment attractiveness. The article provides substantiation of the reliability of income approach for business valuation in the time of economic crisis in Russia and presents an algorithm for implementing the cash flow discounting method within the framework of income approach using the case for a middle-sized construction company. The choice of the object for the research is due to the investment attractiveness of the construction industry in a big industrial city of Krasnoyarsk in the North East of Russia.

Income Approach to Business Valuation: Russian Perspective

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Income Approach to Business Valuation: Russian Perspective"}

In crisis times, making the choice of a company to invest becomes challenging for a potential investor due to the uncertainty of business environment and dim...

Income Approach to Business Valuation: Russian Perspective

Publié en ligne: 05 déc. 2018

Pages: 115 - 128

DOI: https://doi.org/10.2478/zireb-2018-0017

Mots clés
income approach, business value, investment

© 2018 Olga Almabekova, et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Income Approach to Business Valuation: Russian Perspective

Publié en ligne: 05 déc. 2018

Pages: 115 - 128

DOI: https://doi.org/10.2478/zireb-2018-0017

Mots clésincome approach, business value, investment

© 2018 Olga Almabekova, et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Mots clés
income approach, business value, investment