• Kateryna Kononova V. N. Karazіn Kharkiv National University
  • Stepan Kalashnikov V. N. Karazіn Kharkiv National University
Keywords: Business Valuation, Cost Approach, Comparative Approach, Income Approach, Net Asset Method, Method of Agreement, Discounted Cash Flow


The article is devoted to the consideration of the peculiarities of using approaches to business valuation using the example of PJSC "Centerenergo". In the course of the study, the choice of the object of research was justified, a description of approaches and methods for assessing the value of a business was carried out, the features of using the costly, comparative, and profitable approaches using the example of the company under study were considered. According to the research of the study, the market value of PJSC "Centrenergo" was determined.

PJSC "Centrenergo" was chosen as the object of the study, since; firstly, the company is one of the largest state-owned enterprises of the country’s electric power industry in the form of a public joint-stock company. Secondly, the company was approved in the list of objects of large privatization of state assets; therefore, the assessment of business value is an urgent topic for PJSC "Centrenergo".

The assessment of the value of the enterprise was carried out using the cost approach, the method of net assets, and adjustments were made to the existing assets and liabilities of the enterprise.

The cost of the company was calculated using a comparative approach, comparative sales. A search was carried out and the choice of analogous companies was substantiated. The corresponding multipliers were selected and, on their basis, the values for each analog enterprise were calculated. Because of the calculations performed, the value of the enterprise was obtained.

Within the framework of the income approach, the value was estimated using discounted cash flows. The choice of the cash flow model and the forecast period of receipts was selected and justified. The constituents of the discount rate and its definition have been substantiated. The present value of the net cash flows and reversals is determined. The business value was calculated as the sum of the present value of net cash flows and reversion.

Based on the results of the study, the value of the company was established by three approaches to business valuation. The final value of the cost of Centrenergo PJSC was calculated as a result of applying the results matching method. In the calculations, all previously obtained values were used and specific weights were assigned, as a result, the final cost of the surveyed company was calculated.


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How to Cite
Kononova, K., & Kalashnikov, S. (2020). THE USE OF VALUATION METHODS ON THE EXAMPLE OF PJSC “CENTRENERGO”. Social Economics, 1(60), 159-168.