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Journal of Business Valuation and Economic Loss Analysis

Editor-in-Chief: Ewing, Bradley T. / Hoffman, Jim

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CiteScore 2017: 0.32

SCImago Journal Rank (SJR) 2017: 0.160
Source Normalized Impact per Paper (SNIP) 2017: 0.622

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1932-9156
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Valuation of a Company using Time Series Analysis

Philipp Pohl
  • Corresponding author
  • Department of Business, Cooperative State University Karlsruhe, Erzbergerstrasse 121, 76133 Karlsruhe, Germany
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Published Online: 2016-08-26 | DOI: https://doi.org/10.1515/jbvela-2015-0004

Abstract

In this paper we present an approach to value-based management of companies using time series analysis. We present a technique for projecting cash flows in order to calculate the company value using time series analysis. We consider a new, indirect approach and a direct approach of projecting cash flows. We analyse both models from the perspective of value-based management. Finally, company value is calculated for both models, as a point estimate and as a distribution function respectively. As shown in the article, the distribution function of corporate value is a normal distribution function. On this basis, it is possible to apply all instruments of value-at-risk analysis.

Keywords: time series analysis; value-at-risk analysis; value-based management

JEL Classification: C53; G32

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About the article

Published Online: 2016-08-26

Published in Print: 2017-05-24


Citation Information: Journal of Business Valuation and Economic Loss Analysis, Volume 12, Issue 1, Pages 1–39, ISSN (Online) 1932-9156, ISSN (Print) 2194-5861, DOI: https://doi.org/10.1515/jbvela-2015-0004.

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