STUDY ON CORPORATE VALUATION: A CASE STUDY OF FMCG COMPANY

Abstract

The concepts of enterprise value and valuation are quite significant in the modern world. When negotiating the price of a business at the time of performing a commercial transaction, knowledge of how much an enterprise is worth is crucial for both the owner of that firm and investors. The paper explains the corporate valuation method that is being used by a FMCG company and its influence on market trends. Financial market players use valuation to calculate the price at which they are willing to purchase or sell to complete a company sale. This paper describes the objective of the company's valuation and the typical times in the company's existence where this value is required. The methodology used in this study is based on inferences about business valuation methodology that is currently used across different companies. The verification is based on real-world examples. Simultaneously, the elements that may lead to an overly subjective approach to valuing assets, which would be at odds with the qualities of sound valuation, are discussed. The goal is to raise awareness of the risks posed by contemporary company valuation procedures and the difficulties they will face in the future.