Problems in using the Discounted Cash Flow Method in Assessing the Capital Value of Joint Stock Companies

Abstract

The article describes the scientific and theoretical aspects of using the method of discounted cash flows in the assessment of the capital value of a joint-stock company, and focuses on the use of the relative income method in the assessment of the capital value used in developed countries. In particular, when assessing the capital value of a joint-stock company, the market value of ordinary shares in private capital, balance sheet value and dividends of joint-stock companies were analyzed, and the market value of the capital was determined. In addition, the study also describes the analysis of multiplier coefficients, which are widely used in the world in assessing the investment attractiveness of joint-stock companies. This, in turn, reveals the fundamental analysis in the assessment of the capital value of a joint-stock company. Also, existing problems in using the method of discounted cash flows in assessing the capital value of a joint-stock company were identified and scientific proposals and practical recommendations aimed at their elimination were developed.