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We use a decision-tree-based machine learning approach to perform relative valuation. Stocks are valued using market-to-book, enterprise-value-to-assets and enterprise-value-to-sales multiples. Our machine learning models reduce median absolute valuation errors by between 17% and 50% relative to traditional models. The identified valuation drivers are consistent with theoretical predictions derived from a discounted cash flow approach. Accounting variables related to profitability, growth, efficiency and financial soundness are important valuation drivers. The valuations produced by machine learning models behave like fundamental values. A value-weighted strategy that buys (sells) undervalued (overvalued) stocks generates highly significant abnormal returns. When we use models trained on listed firms to value IPOs, machine learning models outperform traditional models in valuation accuracy and can identify mispriced IPOs.

The resource-constrained project scheduling problem (RCPSP) is a basic problem in project management. The net present value (NPV) of discounted cash flow is used as a criterion to evaluate the financial aspects of RCPSP in many studies. But while most existing studies focused on only the contractor's NPV, this article addresses a practical extension of RCPSP, called the payment scheduling negotiation problem (PSNP), which considers both the interests of the contractor and the client. To maximize NPVs of both sides and achieve a win-win solution, these two participants negotiate together to determine an activity schedule and a payment plan for the project. The challenges arise in three aspects: 1) the client's NPV and the contractor's NPV are two conflicting objectives; 2) both participants have special preferences in decision making; and 3) the RCPSP is nondeterministic polynomial-time hard (NP-Hard). To overcome these challenges, this article proposes a new approach with the following features. First, the problem is reformulated as a biobjective optimization problem with preferences. Second, to address the different preferences of the client and the contractor, a strategy of multilevel region interest is presented. Third, this strategy is integrated in the nondominated sorting genetic algorithm II (NSGA-II) to solve the PSNP efficiently. In the experiment, the proposed algorithm is compared with both the double-level optimization approach and the multiobjective optimization approach. The experimental results validate that the proposed method can focus on searching in the region of interest (ROI) and provide more satisfactory solutions.

BACKGROUND Despite Group B streptococcus being a leading cause of maternal and infant morbidity and mortality, no vaccine is currently available to prevent this disease. To inform vaccine developers, countries, and funders, we analyse in this paper the key factors likely to influence the demand for a GBS vaccine and the long-term financial sustainability for a commercial entity considering the development of such a vaccine. METHODS By using population-based forecasting, we estimated the demand for a GBS vaccine based on the burden of disease, the strength of the maternal immunisation systems, the fiscal space, and the track record in introducing new vaccines. Furthermore, we estimated the financial viability for a vaccine developer by estimating the Net Present Value of the vaccine development project using a Discounted Cash Flow model. RESULTS Demand for this vaccine can be significant if policy recommendations for use are adopted by countries, in particular the largest ones, most of which have a burden that justifies the use of the vaccine and if financing for the vaccine will be made available either by countries themselves or by funding mechanisms such as Gavi, the Vaccine Alliance. Different administration schedules may result in even larger demand. With a widespread policy recommendation, the commercial viability of this vaccine can be achieved. The cost of clinical development - particularly the type of pivotal trial required - and the number of competitors are the factors that can strongly influence the long-term financial sustainability and hence the interest of vaccine developers. CONCLUSIONS This analysis suggests the potential for full financial and commercial viability for a manufacturer pursuing the development and commercialization of a GBS vaccine. Risks exists in relation to the clinical trial design and costs, the level of competition, countries' ability to pay, the administration schedule and the availability of policies that encourage use of the vaccine. To reduce those risks and ensure equitable access to a GBS vaccine, the role of donors or financers can prove very important; as can a coordinated operational research agenda that aims at clarifying those areas of uncertainty.

We investigated the techno-economic analysis of two integrated torrefaction and pelletization systems: (1) Torrefaction befOre Pelletization and (2) Torrefaction After Pelletization configurations to produce torrefied wood pellets. The detailed mass and energy balances and operating parameters were obtained from the process simulation model developed with the base case plant capacity of 100,000 Mg yr−1 using natural gas as an auxiliary fuel source. A discounted cash flow analysis was conducted for both configurations to estimate the capital expenditure, operating expenses, production cost, and the minimum selling price of torrefied pellets. The minimum selling price of torrefied pellets at the plant gate was $207 Mg−1 ($8.5 GJ−1) for the Torrefaction before Pelletization and $197 Mg−1 ($8.1 GJ−1) for the Torrefaction After Pelletization configurations. An increase in the plant capacity of up to 200,000 Mg yr−1 for both configurations decreased the minimum selling price by 10%. The sensitivity analysis of various operational and financial parameters demonstrated that the feedstock cost and torrefaction product yield were the most sensitive parameters influencing the minimum selling price of torrefied pellets. Future opportunities exist to reduce the minimum selling price of torrefied pellets to become competitive to conventional wood pellets and coal.

A method for building end-to-end management accounting in a division of the Bank’s subdevision specializing in working with non-core assets is proposed. Has been proposed the process approach, an algorithm for building a database for the formation of key performance and control indicators. Has been described the key stages of the department's work, the attribute composition of entities (set) arriving, enriched and transmitted at each stage of the department's work. By modeling the process has been built a role model, access and editing rights for employees. Data sources (reference books) for optimization and unification of the process of filling the database (tuple) are proposed. A method of accessing the database in the Power Query Microsoft Excel add-in is proposed, which allows you to collect data from files of all basic data types, process and refine the received data. In the interactive programming environment Jupyter Notebook, mathematical and financial models for data analysis (logistic regression, decision tree and discounted cash flow method) were built based on data in order to predict costs, the timing of asset exposure and make a decision on the optimal cost of putting property on the Bank's balance sheet and selling price. Based on ready-made libraries (matpotlib, seaborn, plotly), options for data visualization for management are proposed. Using the example of the Bank's division, the author describes the positive effects and opportunities that open up to the management of different levels in solving day-to-day tasks and planning the activities of the division. A technical task was proposed for the development of a showcase for the sale of non-core assets on the Bank's website as an environment for the accumulation of external data for making flexible management decisions.

The market for space solar power (SSP) is developing. This analysis utilizes a case study of SSP for remote mine operations to determine its economic feasibility. We employ a discounted cash flow (DCF) evaluation and then assess the sensitivity of the DCF model to changes in its underlying assumptions. The results indicate that there are scenarios for SSP where it is considered a viable power alternative. Further, a discussion of the assumed manufacturing and transportation costs decreases to expand the market is given.

This research aims at calculating the fair value of shares of pharmaceutical companies listed on the Indonesia Stock Exchange (IDX). The data used in this research is historical data from the 2013-2020 financial statements, which are used as the basis for projections in 2021-2025. The method used in this research is Discounted Cash Flow (DCF) method with Free Cash Flow to the Firm (FCFF) approach and Relative Valuation method with Price to Earning Ratio (PER) and Price to Book Value (PBV) approaches in three scenarios. The three scenarios used are the optimistic scenario (condition above industry growth), the moderate scenario (the most likely condition for the company), and the pessimistic scenario (the average condition of the industry). The results of the research showed that by using the DCF-FCFF method, KAEF and PYFA stocks experienced overvalued conditions in all scenarios. Meanwhile, KLBF and DVLA stocks were undervalued in all scenarios. Then, from the calculation of the Relative Valuation method, each company was still within the industry range in all scenarios. Overall, KAEF stocks were overvalued by 57.817%, KLBF stocks were undervalued by 7.879%, DVLA stocks were undervalued by 370.865%, and PYFA stocks were overvalued by 16.662% both in DCF method and in Relative Valuation method.

In order to maintain the company's ability to fulfill its liabilities, PT. Jasa Marga (Persero) Tbk will takes a corporate action strategy to strengthen capital structure for the Toll Road Subsidiaries (/APJT). APJT selected are PT. Trans Marga Central Java (/PT. TMJ, is the operator of Semarang-Solo toll road) and PT. Jasamarga Surabaya Mojokerto (/PT. JSM, is the operator of Surabaya-Mojokerto toll road) because of its capability to fulfill their solvents. Corporate action strategy done by analyze related with company performance baluation, optimal capital structure analysis. For Company performance valuation, analyze is done with company's financial ratios. From the calculation and analysis of profitability ratios; liquidity ratios and solvency ratios, PT. TMJ and PT. JSM during year 2015-2019 showed fair good performance. The composition of the capital structure to obtain optimal value for PT. TMJ and PT. JSM are range from 60:40 to 30:70 for the composition of debt and equity. The results of the company valuation using Discounted Cash Flow (DCF) method show that the company value of PT. TMJ, with a capital structure composition of 60:40 worth IDR. 25,862,- /share and with a capital composition of 70:30 share value of PT. TMJ in the amount of IDR.10,418,- /share. As for PT. JSM with a capital structure composition of 60:40 is IDR. 2,709,- /share and with a capital composition of 70:30 the share value of PT. JSM is IDR. 911,- /share. From analyze result, Management should pay more attention in capital expense due it’s effect in Optimizing Capital Structure, then from that Optimal Capital structure, APJT can reduce debt portion dan increasing uts equity portion through several strategy

Islamic bank is a bank that collects funds from the public by using system profit sharing for every profit it gets and in carrying out its activities in accordance with Islamic law. Remembering that in Indonesia most of the population is Muslim, therefore they need a bank that works in accordance with Islamic law. Considering the number of percentages of Islamic banks in Indonesia are still small and cannot yet dominate the market share, therefore this research is expected to find out whether the merging of 3 Islamic banks (BRIS, BSM and BNIS) able to control market share or not. To see the synergy resulting from this merger is used methods Discounted Cash Flow - Free Cash Flow to Equity and Relative Valuation - Price to Book Ratio. The data used are the financial statements of each bank from 2014 to 2019 which are available on the Indonesia Stock Exchange (IDX) or the websites of each bank.

This case guides students through the process of preparing a real-life business case. The business case involves capital expenditure analysis for a potential project in the Wally-Mart Supermarkets frozen supply chain. There are three parts to the business case: (1) prepare a financial model in Excel with a discounted cash flow method to analyze relevant incremental capital expenditures, revenues, costs, and profits; (2) concisely communicate the financial model and business case in a business style Word report; and (3) concisely communicate the financial model and business case in a business style PowerPoint presentation. The case materials include a practice financial modeling exercise. The case is suitable for use in undergraduate and graduate management accounting courses.

In this research, a novel technology is proposed that combines chemical looping combustion and methane reforming in order to convert CO2 to value added chemicals. The stoichiometric number is improved via adding assisted steam and utilizing pressure swing adsorption unit. The process simulation is conducted utilizing Aspen plus-V10 simulation software. The new built-in model featured by AspenTech, dubbed Fluidbed, in Aspen Plus is employed to simulate the CLC section. In Aspen Plus flowsheet environment, a hierarchal approach is considered in that the main flowsheet is divided into 5 hierarchy models or sub flowsheets. The process simulation results display that the overall conversions of CH4 and CO2 via this process are 97 % and 87 %, respectively. The heat integration results depict that 138.7 MW heat energy can be saved in the process. The CO2 emission of the whole process per methanol production is 0.1 tCO2/tMe. The estimated capital expenditure, and operating expenditure are US$ 509 million and US$ 159 million/yr, respectively. A discounted cash flow model combined with sensitivity analyses showed that a breakeven point could be reached with a methanol price of US$ 242/tonne. Net present value, internal rate of return, and pay out time are evaluated based on DCF results.

A techno-economic analysis (TEA) was conducted to evaluate the economic profitability and feasibility for a H2 energy storage system using an alkaline and a polymer electrolyte membrane water electrolysis for 1 MW water electrolysis operation. Many economic analysis methods such as itemized cost estimation, profitability analysis using a cumulative cash flow diagram, and uncertainty analysis employing a Monte-Carlo simulation method were utilized to perform a TEA. In particular, a renewable energy certificate (REC) was considered as an additional benefit of a renewable energy use. From itemized cost estimation, respective levelized costs of H2 of 7.21 and 9.19 $ kgH2−1 were obtained for both H2 energy storage systems in an alkaline and a polymer electrolyte membrane water electrolysis by considering current economy situation and therefore it is still difficult to be cost-competitive compared to a commercial H2 production cost. From profitability and uncertainty analysis results, an appropriate REC weight was confirmed in terms of discounted profitability criteria like a discounted payback period, a net present value, a present value ratio, and a discounted cash flow rate of return. In addition, a REC weight was affected on a net present value compared to a REC trading cost fluctuation.

In recent years, On-orbit servicing (OOS) is in the ascendant, attracting attentions of a growing number of institutions and commercial space companies. The sustainable development of OOS is heavily relied on its economic benefits. However, the economic feasibility of OOS is not sufficiently analyzed in the existing studies. Based on this, a general economic value analysis framework for OOS is proposed in this paper. Firstly, the maximum price that clients would be willing to pay is obtained by real option method through comparing values of OOS by an alternative scheme. Secondly, the minimum price that the servicer could afford is predicted by Discounted Cash Flow (DCF) method, which is based on a service provider value model. Six necessary factors are considered in this model at the same time, including servicing architecture and its initial construction cost, mission related depreciation, income tax, operating expense, monetary value, as well as technical risks and the corresponding insurance premium. Then, the above two prices are compared to analyze the economic feasibility of OOS. Finally, mission cost, pricing strategies and OOS value drivers are modeled and discussed within the estimated acceptable price range. The results show that the OOS is commercially viable when the initial costs of geosynchronous communication satellites and the servicing architecture are more than $242 M and less than $140 M respectively. The applicability and usefulness of the proposed method are demonstrated by an actual business case analysis of the Mission Extension Vehicle-1 (MEV-1).

International audience; The circular economy is calling for the rapid use of already-developed renewable energies. However, the successful implementation of those new fuels is limited by economic and political issues. For instance, in the Brandenburg region, Germany, biogas production from anaerobic digestion of biomass and wastes is a current alternative. However, the upgrading biogas to biomethane is still challenging and the economic viability is unknown. Therefore, we performed an economic analysis for biogas upgrading to biomethane in the Brandenburg region. Five biogas plant sizes were analyzed by the method of discounted cash flow. This method yields the net present value of the projects, thus revealing the profitability or non-profitability of the plants. Results indicate profitable outputs for medium and large plants, with net present values between 415 and 7009 k€. However, the smallest plants have net present values from -4250 to -3389 k€, thus needing further economic efforts or subsidies to reach profitability. Indeed, biomethane prices should range between 52.1 and 95.6 €/MWh to make these projects profitable. Combinations of 50% of investment subsidized and 11.5 €/MWh feed-in tariffs subsidies could make the projects reach profitability. These findings reveal that political actions such as green policies and subsidies are needed to implement green energy. This case study should serve as a potential tool for policy-makers toward a sustainable bioeconomy.

Objetivo: A empresa Magazine Luiza, fundada em novembro/1957, ícone do varejo nacional, abriu seu capital em 2011 na B3, com crescimento exponencial na valorização de suas ações. Este caso proporciona os seguintes objetivos pedagógicos: a) promover a análise de problemas, propor e indagar decisões em relação à valuation; b) estimular a reflexão entre a teoria que sustenta os propósitos de avaliação e a forma como ela deve ser desenvolvida e aplicada; c) ampliar a capacidade de relacionar os pressupostos teóricos de valuation e a sua adequação à realidade. Metodologia: As Demonstrações Contábeis foram extraídas do site da empresa MGL, na Economática® e no site da B3. Também foi utilizada a base de dados do professor Damodaran. Destaca-se que os dados são reais, porém, em contrapartida, considera-se como situação hipotética a existência da empresa Alpha Varejo e sua proposta de aquisição da empresa Magazine Luiza. Resultados: Sob o ponto de vista comportamental, permite que estudantes e docente tenham diálogos e discussões saudáveis de modo que haja respeito mútuo às opiniões e ideias divergentes, permitindo a exposição de seus pontos de vista. Estimar o valor da empresa pelos métodos do Fluxo de Caixa Descontado e Avaliação Relativa é uma tarefa complexa, e pode ser considerada como um processo importante para tomada de decisão, principalmente para o acionista da empresa. No uso dos métodos, reside a necessidade de escolhas de premissas adequadas que melhor refletem a realidade da empresa. Contribuições do Estudo: A realização da atividade proposta, com estudantes de graduação ou pós-graduação na área de negócios em disciplinas voltadas para análise de viabilidade financeira de empresas e valuation, contribui para a formação destes estudantes com desenvolvimento de análise crítica e estímulo à discussão na área de finanças.

The aim of this study is to determine the impact of the quality of accounting information on the cost of capital in the firms listed on the Pakistan Stock Exchange (PSX). The study focuses on the fundamental qualitative attributes of accounting information mentioned in the Statement of Financial Accounting Concepts (SFAC) No. 8. These attributes comprise predictive value, neutrality, completeness and free from error. The cost of capital is measured using the discounted cash flow technique. Very few studies have been conducted using the discounted cash flow technique in relation to emerging stock markets, as compared to developed stock markets. Data were collected from the companies belonging to the non-financial sector of the PSX from 2001 to 2019. The regression analysis results showed that the attributes of accounting information—predictive value, neutrality, completeness and free from error—impact the cost of capital in the PSX. A systematic pattern analysis of risk-adjusted portfolio returns also revealed that these qualitative attributes are genuine risk factors and are not created by chance due to the inefficiency of the market. A policy implication of this finding is that potential investors should consider the qualitative attributes of accounting information before making their investment decisions.

A large-scale hydrogen supply chain is an alternative for the transportation of energy generated from a renewable energy source. Utilizing this technology would drastically improve the generation of clean energy. Therefore, an analysis method to estimate the economic and environmental benefits of the introduction of a hydrogen supply chain using an existing pipeline is developed. The proposed method first estimates the energy and exergy flows in the system to calculate the overall efficiency of these quantities. Afterward, the payback period is estimated based on the overall energy efficiency using the discounted cash flow (DCF) method. The overall efficiency of the system, based on the energy analysis presented, would seem to be the final delivered electrical, fuel and useable heat energy delivered to end use divided by the input solar and wind energy. Furthermore, the environmental effects due to the introduction of the systems are evaluated considering the reduction of global warming and air pollution gases, such as CO2 and PM2.5. The proposed analysis method was applied considering a natural gas pipeline that connects Qinghai and Shanghai. As a result, conversion ratios of 24.9% for electricity and 17.5% for heat were achieved, with the overall efficiency of the system of 42.4% based on the electricity obtained from photovoltaics. 3.02 Gt of CO2, 104 kt of SOx, and 134 kt of NOx, which represent 3.3%, 0.5%, and 0.6% of the annual discharge in China, respectively, and 8.66 kt of PM2.5 would be reduced every year. Furthermore, a reduction of 953 Mt in coal consumption is expected. The payback period of the proposed system using the DCF method is 4.17 and 2.28 years for the two alternatives evaluated in this work. The cash flow of the DCF is influenced by installation cost and operation cost of equipment.

In the literature, the integration of the cash and risk effects of executive compensation into company valuation is discussed only marginally. This paper addresses the question of how these effects can be integrated into corporate valuation. Several methods for solving the problem are discussed and a method free of circular references, similar to the adjusted present value approach to company valuation, is identified. Contrary to a common assumption in the literature, there is no uniform and constant cost of capital for a company that uses employee stock options. Cost of capital needs to be adjusted to the cash and risk impact of equity-based executive compensation. Making recourse to the treasury stock method, which is used to calculate diluted earnings per share, is not recommended here even though a corrected version of this method is used. I discuss different forms of equity-based executive compensation, including the resulting allocation of risk and net present value between owners and managers.

Start-up companies are businesses that are now very popular in Indonesia. To support the business moving fast, these businesses need investors by offering the company's fair value. With similar but not the same calculation, in which start-up companies have different financial indicators and financial assumptions with conventional companies, in this case, the valuation is included innovation value and disruption probability. This research is a descriptive study which is based on case studies in the research object. The object of research is PT ABC, a company engaged in the field of Financial Technology. Data collection is done by collecting secondary data from the company and observation during the internship. The analysis is done by conducting a sensitivity analysis with the DCF method using Microsoft Excel. Valuation is also very closely related to Financial Projection to predict the state of the industry pear to pear landing in the future. The data shows that the enterprise value is Rp. 46,084,735,403,742. Then, EV/Revenue is 1,748 times, and the percentage of raise is 100%. According to DCF Valuation, the author suggests investors invest in the company. Because the valuation is very good.

CO2 utilization via methanol synthesis can be an effective approach to mitigate the issue of global warming. This study developed an innovative process to produce methanol by combining water electrolysis with tri-reforming of methane (TRM). The proposed design utilized carbon-free electricity to split water into O2 and H2; O2 is collected for partial oxidation reaction in the TRM and H2 is collected for stoichiometric number (SN) optimization. This process configuration eliminates the typical problems of H2 surplus or deficit associated with methanol synthesis and allows a substantial amount of CO2 to be converted. The main process flowsheet was developed with Aspen HYSYS process simulator and then the feasibility of this project was evaluated based on its technical, environmental, and economic performances. The estimated capital expenditure (CAPEX), operating expenditure (OPEX) and GHG emissions of the baseline plant are US$774 million, US$263 million/yr. and −0.14 kgCO2eq/kgMeOH, respectively. In particular, water electrolysis process accounted for 34 % of CAPEX and 51 % of OPEX. A discounted cash flow (DCF) model combined with sensitivity analyses showed that a breakeven point could be reached with a methanol price of US$491/ton. The results demonstrated that combining water electrolysis with TRM could achieve a sustainable carbon-sink process for methanol production.

Theoretical basis This case focuses on valuation using various methods to price a firm. Students attempting this case should know the basics of how to value a company using discounted cash flow, comparable multiples and comparable transactions. Students will need to calculate the weighted average cost of capital using comparable companies and the capital asset pricing model and determine differences in value created by an acquisition vs a leveraged buyout (LBO). The case also discusses qualitative issues in mergers, such as fit between target and acquirer, integration issues, potential high debt from LBO. Research methodology This case was library-researched, using Amazon and Whole Foods public filings and business press papers. Case overview/synopsis Whole Foods Markets received a buyout offer from Amazon. Whole Foods could solicit offers from other firms, including firms more directly in the grocery business. Whole Foods also considered a management buyout or purchase by a private equity firm. Whole Foods had underperformed, with a falling stock price and reduced profitability. Amazon’s bid was attractive, a premium of about 40 per cent over Whole Foods’ pre-merger stock price. Whole Foods also wanted to consider issues such as culture. Whole Foods’ strategy was to sell organic foods at premium prices, while Amazon was a retail discounter with a largely online business. Complexity academic level This case is appropriate for graduate students at the end of their introductory course or for graduate or undergraduate students in a corporate finance elective, particularly a merger/restructuring elective. The case has been used in an advanced undergraduate finance elective, with a team presenting the case to the class, with remaining students in the class required to write case summaries and questions for the presenting group.

The aim of the paper is to develop a methodology for evaluating oil and gas fields return on investments based on not only finance, but also environmental and social interrelations. The subject of the study is a comparison of methods for calculating return on investments on the example of China, Canada and Russia’s oil and gas companies. The authors used a comparative method of calculations, as well as a case study — a comparison of return on investments methods on the example of oil and gas enterprises. In the paper, the authors analyze the next traditional methods of economic assessment: net present value, differential rent, reserve and multiple costs. The authors suggest using a new assessment method that determines the energy return on investment (EROI). This method does not rely on traditional analysis of net present value (NPV), internal rate of return (IRR), and financial sensitivity. It comprehensively takes into account the costs of energy production, environmental protection and energy efficiency. Based on the results of the study, the authors conclude that the advantages of various methods of economic assessment should be integrated in order to avoid disadvantages and create a new dynamic integrated system of economic assessment. Oil and gas companies may use the results of the study to implement the energy return on investment methodology concerning oil and gas fields’ evaluation. A promising direction for further research may be to compare the energy return on investment at oil and gas enterprises in different countries as well as developing corporate reporting concerning energy return on investment improving efficiency.

The paper present an economic model and framework for the development of natural gas pipeline for sustainable economic development in Nigeria. The study reviewed the economics of natural gas pipeline development in Nigeria. The research formulated an economic model for a case study of Calabar to Ajaokuta 417km gas pipeline project and a discounted cash flow for an economic life of 40 years. The project economics indicates a Net Present Value (NPV) of 12.5 billion USD with a discounted payback period of 7 years and 9 nine months, Profitability Index (PI) of 7.30, Internal Rate of Return of 23.05% and Growth Rate of Return 26.97% and these project economic indicator shows that the gas pipeline investment is viable. This study provides an economic model that would guarantee security of gas supply, provide access to clean energy and provides an economic framework to support long term natural gas pipeline development in Nigeria

Valuation techniques, such as discounted cash flow and multiples, are applied in transactions and are also relevant for accounting, tax, and litigation issues. Within these and other valuation purposes, the techniques are crucial for “social interactions” like market processes and legal affairs. We examine this “social dimension” of business valuation and look especially at the advancement of valuation knowledge and techniques. For this purpose, we employ an approach based on “actor-network-theory” (ANT). In order to study specific margins of business valuation, the focus lies on the dissemination of the capital asset pricing model (CAPM) in German judicial valuation. We conclude, inter alia, that “the” CAPM has developed into a growing actor-network over the time, a well-established infra-structure which allows other actors to link to it. The CAPM-network deploys specific actors which enable to conduct or implement advantageous actions. In this context we discuss concepts like co-authorities, (vague) labelling, vague referencing and responsibility at a distance. Moreover, we identify specific arguments which are used by courts regarding the application of the CAPM. We suggest that these arguments are particular important to solidify and perpetuate the application of the model in judicial practice. The present study intends to shed light on the process of the construction of valuation techniques, the actors which are involved in this process, and the interactions of these actors. In doing so, we intend to facilitate and objectify the dialogue between actors in business valuation and thus to improve further ambitions to construct valuation techniques.

Purpose : This study evaluated the bio-economic potentials of temperate lowland silvopastoral agroforestry systems in North Wales, United Kingdom. Methodology : The bioeconomic analysis compared three land-use plausible scenarios (‘forestry’, ‘pasture / livestock’ and ‘agroforestry’) at 3.5% discount rate on a 10-hectare farm over a 30-year rotation using discounted cash flow analysis and national costs and prices for both livestock and tree products based on 2016 baseline data. Base case net present value (NPV) and annual equivalent value (AEV) were calculated for each production livestock grazing, farm forestry, and silvopastoral agroforestry scenario, assuming no policy interventions. Findings: Generally, results of the economic analyses indicated that under the baseline case, assuming no policy interventions, none of the options was viable. This study also showed that increase in lamb sale price, wood price, and wood yield improved the economic viability of the three investment options significantly. Again, the viability of the three investment options in this study is shown to decrease with increase in discount rates. Furthermore, this study disclosed that the application of prevailing government grant/subsidy schemes significantly improved the economic viability of the three investment options as livestock, forestry and agroforestry options showed positive NPV and AEV values at the baseline assumptions and are therefore adjudged economically viable as they all met the decision rule criteria for investment acceptance. Forestry was the most viable option with the highest NPV and AEV, followed by pasture/livestock and agroforestry options. Unique contribution to theory, practice and policy: This study underscored the imperative need for policy makers to improve awareness of the benefits of grant incomes and address farmers’ concerns about the economic viability of livestock, forestry and agroforestry investments. The results of this research will help promote greater awareness of the economic value of trees in extensively grazed landscapes in the United Kingdom as well as provide a basis for future comparisons and analysis of farm programs and ecosystem service markets.

Nesta pesquisa, buscou-se analisar os métodos de valoração de patentes discutidos pela literatura e valorar a patente de defumador de pescados (MU 8802959-0) do Núcleo de Inovação Tecnológica do Instituto Federal de Educação, Ciência e Tecnologia da Bahia – NIT/IFBA. Para tanto, os procedimentos metodológicos adotados consistiram em pesquisa exploratória, de natureza bibliográfica, documental, baseada em artigos, dissertações, teses, relatórios técnicos e sites institucionais. A abordagem empregada na pesquisa foi a de pesquisa qualitativa, com análise de dados qualitativo e quantitativo. Quanto aos dados, foram coletados dados secundários utilizados que foram obtidos a partir do documento de patente e por meio de observação direta realizada no NIT/IFBA. Como resultados observou-se que o método alternativo de valoração, que leva em consideração a característica do ativo, bem como o Nível de Prontidão Tecnológica (NPT) e variáveis econômicas, mostrou-se mais favorável para a valoração da patente de defumador de pescados do NIT/IFBA, quando comparado com as abordagens tradicionais, a exemplo do método de Fluxo de Caixa Descontado (FCD), opções reais e abordagem de custos. Ademais, o método alternativo considera, também, as particularidades e a dinâmica dos NITs, além de requerer dados que são acessíveis aos Núcleos e apresentar flexibilidade, podendo ser adaptada de acordo com as características da patente.

Real estate development has received less scrutiny than real estate investment in terms of appraisal practices and performance measurement. This is despite the inherent uncertainty and financial risks associated with development as an activity. We investigate market practices regarding performance metrics and return expectations both for residential and commercial real estate development in the UK, exploring what is considered as an appropriate return and how this varies according to type and duration of scheme, and method of appraisal used. After examining the literature and the information available on ex-post returns from development activity, results from a survey of real estate developers are reported, supplemented by findings from interviews. The results suggest that the use of traditional residual valuation techniques dominates discounted cash flow models when appraising development projects, particularly among residential developers, while profit-on-cost and profit-on-value are the most popular metrics for quantifying required returns. Unlike NPV or IRR, these metrics do not account for the timing of cash flows, raising questions about the robustness of appraisals in this sector. Such metrics might suffice if required profits are adjusted in ways that are consistent with scheme duration and risks, but it is unclear that this is currently the case.\ud \ud \ud Keywords\ud Development; Housebuilding; Profit Measures; Real Estate Appraisal; Required Returns

Many products deteriorate with time and have a maximum lifetime. An expiration date will be marked. And then the product will no longer be sold after the expiration date. Thereafter, the demand rat...

The business appraisal process is described in many works. It states that the main purpose of the assessment process is to identify critical business areas that create value. In which publications are investigated the methodological foundations for assessing the value of property. The problems of different approaches to the assessment of property objects in seaports are described. But there is a lack of comprehensive business valuation studies in other sectors of the maritime industry, such as onshore services. The aim of the work is to study the goals and methods of assessing the value of a business in various areas of the maritime industry, taking into account their specifics. Business valuation is a multilevel complex process. When evaluating a business, it is necessary to audit and sometimes revalue all the assets of the company. It is necessary to build forecasts for a certain time interval. Before starting the business appraisal process, it is necessary to take into account certain key factors: economic factors (profitability and risks), political factors (lack of a stable and predictable situation in the industry), social factors (personal reasons of customers and consumers of appraisal), information factors (for correct estimates need reliable information). The need to assess the value of a business arises in almost all transformations: when buying and selling an enterprise, its corporatization, mergers and acquisitions, as well as in many other situations. There are situations when the need to assess those specified in the law. Basically, these cases concern the appraisal of state property. There are many other situations where an assessment needs to be made. These include: buying - selling a company, making management decisions, determining the amount of tax on the company's property, insuring the company's property, obtaining a loan, investing. A properly performed appraisal is also a monitoring of the company's performance and revaluation of the property's value. Therefore, it is important to ensure that the financial data to be evaluated is complete, current and accurate. Only with reliable data and a well-planned strategic approach can a reliable forecast be made. The more complete and detailed the data for analysis are, the more accurate and qualitative the results of the assessment will be. The most common valuation method is the discounted cash flow method. Its advantage is the ability to measure future results today. This is a complex expert method, but it provides information about the business prospects. When assessing a business in the maritime industry, it is necessary to take into account the existing methods and approaches, but business as an object of assessment requires a different message from the traditional methods of profitable, comparative and cost-based approaches, and the use of specific methods for assessing the business and taking into account the specifics of the management of individual sectors of the maritime industry.

This case study uses data from a Southern California Edison residential customer on a grandfathered tiered rate plan to investigate 1) whether it is economically beneficial for the customer to switch from a tiered-rate plan to a Time-of-Use (TOU) plan, 2) whether going solar now makes financial sense for new solar customers, 3) what level of usage offset (the percentage of the customer’s annual electricity consumption that is provided by the solar panels) would result in the maximum financial benefit for the customer under each of the many TOU plans, and 4) whether solar customers on TOU plans can save substantially by time shifting small amounts of electricity usage from peak periods to off peak periods. We find that, by and large, there is no compelling reason for solar customers on the grandfathered tiered rate plans to switch to TOU plans. Solar panels continue to be an excellent investment for customers thinking of going solar, and the ideal usage offset for this customer (and others on TOU rate plans) is in the 103% - 107% range. That is, savings are maximized when solar panels produce 103% - 107% of the customers’ annual electricity consumption. Finally, we find that shifting a modest amount of consumption from peak rate hours to off peak hours during the two months of maximum electricity consumption will result in significant savings.

This chapter addresses relative valuation (i.e., market-based) methods, asset-oriented methods, real options analysis (i.e., contingent claims), and replacement cost, often used as alternatives to discounted cash flow valuation. Relative valuation methods include comparable company, comparable transactions, comparable industry techniques, and value driver-based valuation. Asset-oriented methods include tangible book value and liquidation- or breakup valuation techniques. This chapter also discusses in detail how to look at merger and acquisition (M&A) valuation in the context of real options and concludes with a summary of the strengths and weaknesses of the alternative valuation methods (including discounted cash flow) and when it is appropriate to apply each methodology.

In practice, a cash payment is a classical payment term, a credit payment is commonly applied to stimulate sales, and an advance payment is used to avoid order cancellations. A combination of these three payment types is considered an advance-cash-credit (ACC) payment scheme, which is commonly used in business transactions. For instance, a home buyer must pay a homeowner 1% of the listing price as a good-faith deposit (i.e., an advance payment) to start negotiating the price, then pay 10% of the agreed-upon price (i.e., a cash payment) when signing the contract, and then has a delay before the final payment (i.e., a credit payment, a mortgage) is approved. In this paper, we develop an economic production quantity (EPQ) model for perishable goods in a three-echelon supplier-manufacturer-customer chain: (1) demand rate depends on selling price and freshness of a perishable item (i.e., time to sell-by date), and (2) the supplier offers an upstream ACC payment to the manufacturer, while the manufacturer grants a downstream cash-credit payment to customers. Consequently, the manufacturer must determine optimal selling price, production run time, and replenishment cycle time to maximize the present value of total annual profit by using a discounted cash flow (DCF) analysis. The proposed model fits in a general framework that includes numerous previous models as special cases. The numerical results reveal that the present value of total profit is joint concave in both selling price and cycle time. Finally, a sensitivity analysis is performed and managerial insights are also provided.

The article is devoted to one of the constantly discussed topics of development of the military-industrial complex – the directions of development of the pricing system for defense products [1, 2]. The main methods of pricing used in the military economy are highlighted. The ways of the pricing system development based on statistical and engineering methods of analysis of the influence of various technological factors are considered, the tendency of transition to the methods of «full» valuation of products with no connection to labor intensity is shown. The discounted cash flow method is considered as one of the methods of contract profitability estimation. The necessity of the creation of a modern effective pricing system based on an innovative-institutional approach is shown. It is indicated that the new pricing system will require the restructuring of organizational structures of enterprises with the inclusion of fundamentally new elements.

Pakistan has not been yet able to exploit its huge shale resources pertaining to uncertainness of potential reserves, appropriate technology, and commercial extraction. The exploitation of these shale resources can significantly fulfill the ever-growing energy need of Pakistan. This study assesses the economic feasibility of emerging shale gas plays in Pakistan by employing a reservoir analog approach to the US shale formations that are closely related to the shale formations in Pakistan. The aim is to eliminate the associated economic uncertainties of the future shale gas projects of Pakistan and to provide guidance for the early assessment of emerging shale gas plays with no production history or previously drilled wells. Recommendations for the economically viability of shale gas plays in Pakistan have also been prepared from this study. Economic model was developed based on discounted cash flow method. Sensitivity analysis of different financial (royalty rates and corporate tax rate) and well construction and stimulation parameters (drilling, completion, hydraulic fracturing, well-testing, and well tie-in costs) were performed to evaluate their effect on the net present value (NPV). Results showed that production from Pakistan shale gas resource using existing technology is economically feasible with the break-even gas price of $11.35/Mscf if operators received financial incentives on royalty and taxes from government. With prevailing tax regime, the hydrocarbon extraction from the proposed field is financially expensive and risky with the gas prices ranges between $18.77/Mscf and $53/Mscf for different financial scenarios. It was found that hydrocarbon extraction from the proposed shale gas field is economically viable with the combination of favorable financial incentives and technological advancements.

The article views the specifics of the wholesaler's marketing solutions aimed at satisfying the needs of consumers. The role of interaction with clients for the formation of range and the implementation of profitable wholesale and intermediary activities are shown. The potential of CRM systems for improving the quality of interaction of a wholesale company with customers is revealed. A comparative analysis of the functionality of various CRM systems is carried out. The activities of a wholesale intermediary company aimed at achieving business goals are investigated and the need for the implementation of the Bitrix-24 CRM system is identified. The calculations of the project justification and the payback period are presented. Methodological approach to evaluating the purchase of the Bitrix-24 CRM system is formulated and recommendations are given for improving the procedures of interaction between the seller and the buyer during the price negotiations process.

Technology finance, which has attracted worldwide attention for the successful business development of small-and-medium enterprises (SMEs) or start-ups, has advanced an innovation or stagnation way-out resolution strategy for companies in line with the low-growth economic trends. Although the development of new technologies and the establishment of active R&amp, D and commercialization strategies are essential factors in a company’s management sustainability, the activation of the technology market in practice is still in progress for its golden age. In this study, to promote a technology transfer-based company’s growth and to run technology-based various financial support activities, we develop and propose a new intelligent, deep learning-based technology valuation system that enables technology holders to estimate the economic values of their innovative technologies and further to establish a firm’s commercialization strategy. For the last years, the KIBO Patent Appraisal System (KPAS-II) herein proposed has been advanced by KIBO as a web-based, artificial intelligence (AI) and evaluation data applications valuation system that automatically calculates and estimates a technology’s feasible economic value by utilizing both the intrinsic and extrinsic index information of a patent and the commercialization entity’s business capabilities, and by applying to the discounted cash flow (DCF) method in valuation theory, and finally integrating with deep learning results based on the in-advance previously established patent DB and the financial DB. The KPAS-II proposed in this study can be said to have dramatically overcome the long-term preparation period and high levels of R&amp, D and commercialization costs in terms of the limitations that the existing technology valuation method possesses by enhancing the reliability of approximate economic values from the deep learning results based on financial data and completed valuation data. In addition, it is expected that technology marketing coordinators, researchers, and non-specialty business agents, not limited to valuation experts, can easily estimate the economic values of their patents or technologies, and they can be actively utilized in a technology-based company’s decision-making and technologically dependent financial activities.

The concept of risk is well known in the energy sector. It is normally recognized when it comes to price and cost forecasting, annual production calculation, or evaluating project lifetime. Nevertheless, it should be pointed out that the quantitative evaluation of risk is usually difficult. The discount rate is the only parameter reflecting risk in the discounted cash flow analysis. Therefore, knowledge of the discount rate along with the major components affecting its level is of fundamental significance for making investment decisions, capital budgeting, and project management. By referring to the standard coal-fired power generation projects the authors of the paper tackle the analysis of the composition of discount rate for onshore wind farm technologies in the Polish conditions. The study was carried out on the basis of a typical (hypothetical) onshore wind farm project assessed at the feasibility stage. To enable comparisons and discussions, it was assumed that the best reference point for such purposes is the real risk-adjusted discount rate, RADR, after-tax, in all equity evaluations (the ‘bare bones’ assumption); that is because such a rate reflects the inherent characteristics of the project risk. The study methodology involves the a priori application of the discount rate level and subsequently—in an analytical way—calculation of its individual components. The starting point for the analysis of the RADR’s composition was the definition of risk, understood as the product of uncertainty and consequences. Then, the risk factors were adopted and level of uncertainty assessed. Subsequently, using the classical sensitivity analysis of IRR, the consequences (as slopes of sensitivity lines) were calculated. Consequently, risk portions in percentage forms were received. Eventually, relative risks and risk components within cost of equity were assessed. Apart from the characteristics of the discount rate at the feasibility stage, in the discussion section the study was supplemented with an analogous analysis of the project’s cost of equity at the operating stage.

This study aims to assess the potential risks of setting up a hydrogen infrastructure in the Netherlands. An integrated risk assessment framework, capable of analyzing projects, identifying risks and comparing projects, is used to identify and analyze the main risks in the upcoming Dutch hydrogen infrastructure project. A time multiplier is added to the framework to develop parameters. The impact of the different risk categories provided by the integrated framework is calculated using the discounted cash flow (DCF) model. Despite resource risks having the highest impact, scope risks are shown to be the most prominent in the hydrogen infrastructure project. To present the DCF model results, a risk assessment matrix is constructed. Compared to the conventional Risk Assessment Matrix (RAM) used to present project risks, this matrix presents additional information in terms of the internal rate of return and risk specifics. View Full-Text