Problems and Peculiarities of the Methods for Valuation of the Fastest-Growing Companies
Irina Vyacheslavovna Kosorukova1, Irina Gennad’evna Sukhanova2, Olga Dmitrievna Kosorukova3, Nataliya Vital’evna Mirzoyan4, Natalya Nikolaevna Ivlieva5
1Irina Vyacheslavovna Kosorukova, Moscow University for Industry and Finance «Synergy», Moscow, Russia.
2Irina Gennad’evna Sukhanova, MRICS, Moscow University for Industry and Finance «Synergy», Moscow, Russia.
3Olga Dmitrievna Kosorukova, Moscow University for Industry and Finance «Synergy», Moscow, Russia.
4Nataliya Vital’evna Mirzoyan, Moscow University for Industry and Finance «Synergy», Moscow, Russia.
5Natalya Nikolaevna Ivlieva, Moscow University for Industry and Finance «Synergy», Moscow, Russia.
Manuscript received on 18 June 2019 | Revised Manuscript received on 25 June 2019 | Manuscript published on 30 June 2019 | PP: 2220-2225 | Volume-8 Issue-5, June 2019 | Retrieval Number: E7493068519/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Approaches and methods for valuation of companies described by a rapid growth of key financial indicators in a short time period have been reviewed. The fastest-growing companies have been formulated as a separate industry for research. The preconditions have been substantiated for considering the fastest growth as the most important factor of value formation at the present stage. The main problems in the fastest-growing companies’ valuation have been identified, and possible solutions have been suggested. The method for valuation of the fastest-growing companies has been focused on the use of specialized multipliers within the comparative approach, as well as on due consideration for the survival rate of companies after the active growth phase and the peculiarities of value formation in the income-based approach.
Keywords: Fastest-Growing Companies, Problem Of Uncertainty, Cash Flow Forecast, Market Multipliers, Expected Growth, Stages of The Company’s Life Cycle, Business Value.
Scope of the Article: Marketing and Social Sciences