Business Valuation and Company Value
Business valuation and company value play a very important role in making an informed investment decision; buying and selling shares and bonds of a company on the stock market; insurance; taxation, etc. This book develops new approaches to business valuation and company value. The existing methods of business and company valuation have many shortcomings, two of which are global, related to the impossibility of estimating one of the fundamental parameters of valuation – the discount rate, and the impossibility of correctly accounting for the retrospective period of valuation. Both of these shortcomings can currently be overcome only within the framework of the modern theory of Brusov-Filatova-Orekhova (BFO), which is done in this monograph, devoted to the development of a qualitatively new approach to the valuation of businesses and companies. The second most important method of business valuation – CAPM – was generalized by the authors to include financial risk along with business risk, and for the first time this was done correctly. A new model – CAPM 2.0 – was created and applied to many companies. And finally, CAPM 2.0 was included in the modern theory of Brusov-Filatova-Orekhova (BFO), which allows for a correct assessment of a business and a company, taking into account both business and financial risks, illustrating the practical application of the developed innovative approach.
Peter Brusov is professor at the Financial University under the Government of the Russian Federation in Moscow (Russia). He is an expert in financial management, corporate finance, investments, ratings, taxation, business valuation. He is a co-author of the famous Brusov-Filatova-Orekhova theory, which replaced the well-known Modigliani-Miller theory. As well he is a co-author of the CAPM 2.0 model, which generalized the famous CAPM model for accounting the financial risk along with business risk. Peter Brusov is the author of the qualitatively new approach to business valuation. He has been a visiting Professor of Northwestern University (USA), Cornell University (USA), Osaka City University (Japan) and National Chung Cheng University (Taiwan) among other places. He is the author of over 550 research publications including nine monographs, numerous textbooks and articles.
Tatiana Filatova is professor at the Financial University under the Government of the Russian Federation in Moscow (Russia). She is an expert in financial management, corporate finance, investments, ratings, taxation, business valuation. Tatiana Filatova is a co-author of the famous Brusov-Filatova-Orekhova theory, which replaced the well-known Modigliani-Miller theory. As well she is a co-author of the CAPM 2.0 model, which generalized the famous CAPM model for accounting the financial risk along with business risk. Tatiana Filatova is the author of the qualitatively new approach to business valuation. In the past 20 years, she has been Dean of the faculties of financial management, management, state and municipal government at the Financial University. Tatiana Filatova is the author of over 300 research publications including eight monographs, numerous textbooks and articles.