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The Intrinsic Value of an Enterprise Determined by Means of the FCFE Tool

Institute of Technology and Business, School of Expertness and Valuation, Okruzni 517/10, 37001 Ceske Budejovice, Czech Republic
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Sustainability 2020, 12(21), 8868; https://doi.org/10.3390/su12218868
Received: 14 September 2020 / Revised: 20 October 2020 / Accepted: 21 October 2020 / Published: 26 October 2020
(This article belongs to the Special Issue Company Assessment: Basis of Its Sustainable Development)
This paper deals with the determination of the intrinsic value of the company Seznam.cz, a.s. using discounted cash flow. Specifically, it is concerned with determining the value of the business from the perspective of the company’s shareholders. The Free Cash Flow to Equity (FCFE) method is chosen for analysis and determination of the value. According to this method, the specific FCFE values are discovered. However, the enterprise value must also be analyzed on the basis of other key indicators, such as financial leverage, the Capital Asset Pricing Model (CAPM) method, or the net present and future value of the FCFE. This is especially important so that the results can be put into mutual relations and a sufficient representative value of the FCFE results can be achieved. Input values stem from the company’s annual reports. From the results of the mentioned methods and indicators, it was found that the value of the FCFE is quite high, which means that the capital used is used appropriately. Based on the result of the continuing value of the FCFE, it can be said that the company’s intrinsic value is at a very good level. View Full-Text
Keywords: company’s intrinsic value; free cash flow; financial leverage; CAPM; FCFE company’s intrinsic value; free cash flow; financial leverage; CAPM; FCFE
MDPI and ACS Style

Jezkova, V.; Rowland, Z.; Machova, V.; Hejda, J. The Intrinsic Value of an Enterprise Determined by Means of the FCFE Tool. Sustainability 2020, 12, 8868. https://doi.org/10.3390/su12218868

AMA Style

Jezkova V, Rowland Z, Machova V, Hejda J. The Intrinsic Value of an Enterprise Determined by Means of the FCFE Tool. Sustainability. 2020; 12(21):8868. https://doi.org/10.3390/su12218868

Chicago/Turabian Style

Jezkova, Veronika, Zuzana Rowland, Veronika Machova, and Jan Hejda. 2020. "The Intrinsic Value of an Enterprise Determined by Means of the FCFE Tool" Sustainability 12, no. 21: 8868. https://doi.org/10.3390/su12218868

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