Wyniki wyszukiwania - BazTech

1

The relevance of using cash flows and economic profit-based methods in capital budgeting: a focus on techniques – FCFF, FCFE and EVA

Gnap Michał, Pitera Rafał

Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska

|

2023

|

z. 172

219--238

EN

Purpose: The purpose of this paper is to examine consequences of choice: cash flow or economic value-added method on the net present value of investment project, further on company value. Design/methodology/approach: The article introduces three main methods to measure the net present value of investment project: free cash flow to firm, free cash flow to equity, and economical value added. Paper examines the challenge of using these three-methods in determining what constitutes cash flow and what is the source of the investment value. Findings: The cost of capital should be calculated in different ways to ensure the validity of the calculation. Estimation should be explored by other influencing factors, such as expected rate of return, market value of cost, rather than accounting/historical value. Implementing these factors is necessary to evaluate business value. According to the presented approach the use of the FCFF technique creates fewer risks of acting against the interests of the owners than the use of the FCFE or EVA techniques. Practical implications: As one of the main implications in business, valuation is cost of capital. According to the financing priority theory, when a firm needs financing, the first consideration is internal financing, while equity financing is secondary. Both types of financing sources determine the financing structure and ultimately affect the value of the company. Originality/value: The paper provided and insight in the different investment project valuation methods that are used in the nowadays practice. This was done in an attempt to answer the question: What method should not be used in the assessment of investment projects? The paper provides evidence that most appropriate method in estimating NPV value of investment project is FCFF.

2

Szacowanie przepływów pieniężnych FCFF dla pola eksploatacyjnego na potrzeby oceny jego efektywności w cyklu życia

Kustra A., Pytel J., Wróbel A.

Przegląd Górniczy

|

2013

|

T. 69, nr 9

99--104

PL

W artykule zaprezentowano przykład szacowania przepływów pieniężnych opartego na metodologii FCFF (przepływy pieniężne dla wszystkich stron finansujących, tj. dla właścicieli, kredytodawców, pożyczkodawców) dla wybranego pola eksploatacyjnego. Określony został cykl życia całego pola, które następnie zostało organizacyjnie zdekomponowane na pojedyncze pola ścianowe. Ich wybieranie odbywać się powinno w z góry założonym harmonogramie. Jednocześnie wskazano budżety kapitałowe dotyczące wielkości kosztów oraz przychodów dla każdego pola ścianowego w cyklu jego życia. Skonstruowano je przy uwzględnieniu wszystkich zasad rachunkowych związanych z rozliczeniem kosztów i nakładów powstających poza etapem właściwej eksploatacji. Wskazano możliwości wykorzystania skonstruowanych przepływów dla modelu oceny efektywności eksploatacji w polu eksploatacyjnym.

EN

This paper presents an example of cash flow estimations on the basis of FCFF methodology (cash flows for all financing parties i.e. owners, grantors of credit and lenders) for the chosen exploitation site. The whole life cycle of the exploitation site, afterwards divided into longwalls, was determined. The mentioned exploitation should be performed according to the schedule assumed in advance. Simultaneously, the authors pointed the capital budgets which refer to the costs and revenues of each longwall in its life cycle. The calculations were made under existing accounting rules which concern the settlement of costs and expenditure arising beyond the exploitation itself. Particularly, it was focused on calculations of revenues and costs of development and liquidation phases. In the light of the appropriate accounts, methods of calculations of free cash flows (FCFF) in a life cycle for the model of estimation of the efective exploitation in seam were developed.

3

Metodologia wyceny wartości rynkowej marki na przykładzie metody opłat licencyjnych

Michna A.

Zarządzanie Przedsiębiorstwem

|

2003

|

Vol. 6, nr 1

30-33

EN

The article presents a method to calculate licence fees used for brand valuation. The article discusses an algorithm used to calculate cash flow for ex ante evaluation. Sales volume and sales value reflect the strategic goals of a company and their evaluation is of key importance in the method presented, therefore the need for in-depth knowledge of the sector in which a given company operates is stressed, as well as knowledge about the competitiveness of its products and relationships with customers and suppliers alike. The article also discuses a method to calculate licence fees for valuated brands. Models to calculate discount rate are presented and attention is paid to the need to adjust a given model to an established cash flow. Methods to calculate residual value are also reviewed; residual value reflects the value after a given forecast period, when cash flows have stabilized.