The Effects of a Change in the Environment on Business Valuation Using the Income Capitalization Approach


  • Maria Reznakova Brno University of Technology
  • Michal Karas Brno University of Technology



strategic analysis, business valuation, sales forecast process


Determining the company value in the conditions of unstable development is a very difficult, almost sophisticated activity. The experience of authors confirms high sensitivity of the resulting company value in relation to critical input parameters, which are known as value drivers. One of these drivers, in case of determining the company value using the income capitalization approach, is the expected sales. In practice, some authors, but mainly experts, limit sales forecast to extrapolation of the identified trend of the past development, while neglecting the importance of the strategic analysis. The aim of the strategic analysis is to identify all factors which may influence future company objectives, i.e. also future sales. This article provides a possible approach to the correction of sales forecast based on the information gained from the strategic analysis.


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How to Cite

Reznakova, M., & Karas, M. (2012). The Effects of a Change in the Environment on Business Valuation Using the Income Capitalization Approach. Equilibrium. Quarterly Journal of Economics and Economic Policy, 7(2), 119–137.



Financial markets and finance management

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