APPLICABILITY OF VALUATION MODELS FOR FINANCIAL MANAGEMENT OF A COMPANY

Abstract

Value-based management is generally accepted concept of financial management. The practical implementation of this concept requires valuation models which allow to assess company regularly and to compare effectiveness of alternative decisions in terms of impact on the company value. The theory and practice of business valuation uses a wide range of valuation models, but not all of them are applicable for management purposes. This article describes the classification of the most popular valuation models within the income-based valuation approach. Applicability criteria of valuation models for financial management of a company are substantiated in this article. A comparative analysis of the most popular valuation models was held to meet those criteria.