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Estimating and modeling of the intrinsic value of a company: The Russian practices

Vol. 26, Iss. 4, APRIL 2020

Received: 8 October 2019

Received in revised form: 13 March 2020

Accepted: 27 March 2020

Available online: 28 April 2020

Subject Heading: BUSINESS VALUE

JEL Classification: G12, G32

Pages: 947–960

https://doi.org/10.24891/fc.26.4.947

Jafarov V.A. Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russian Federation
vasif.asif@mail.ru

ORCID id: not available

Subject. This article examines the issues related to the fundamental value of a company that is non-permanent.
Objectives. The article aims to define the role of modeling of the fundamental value of a company in Russia and its estimation based on economic capacity indicators and dependent on the enterprise value calculated through various methods.
Methods. For the study, I used the methods of induction and deduction, and analysis and synthesis.
Results. The article determines that at present in Russia, a great deal of attention is paid to the evaluation and modeling of the fundamental value of a company.
Conclusions and Relevance. To assess and model the fundamental value of a business, it is necessary to rely on economic performance, as well as the enterprise value indicators using different approaches. While developing, companies should focus not only on enhancement in value for shareholders, but also on the possibility of creating shared essential values that would be beneficial both for business and society. The results of the study can be used at enterprises of different forms of ownership when evaluating and modeling of the business fundamental value.

Keywords: fundamental value, company, valuing, modeling, true enterprise value

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