FBK: How to Evaluate Business Correctly

Alexander Matyushin, FBK Valuation Associate Director, held a video lecture – “The income approach in stating the value of business” - for the audience of the Financial Director journal.

The lecture gives a detailed review of methods to determine the value of the company and/or own capital based on the calculation of the present value of expected future earnings the sum total of which the Federal Valuation Standard defines as an “income approach”.

“The income approach is considered to be the most acceptable in respect of investment motivation as any investor who puts up money in the going business does not buy, as a rule, a set of assets consisting of buildings, constructions, machinery, equipment, intangible assets, etc. but buys a flow of future income allowing him to recompense the invested funds and gain profit,” said Alexander Matyushin.

You can find the full lecture of Alexander Matyushin here.

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