2003 Volume 11 Issue 2 Pages 29-42
Unlike properties, the peculiarity of corporate value is that it varies according to its ownership. That is because corporate value depends on future cash flow. As art and jewelry are evaluated by their static value, corporation is evaluated by its dynamic value. In this article, the cylinder model is used to evaluate the corporate value. I show the relationship between the corporate value and the intangibles assets’ value, and how corporations are evaluated in M & A.
In evaluating corporate value, asset value used in operation is not an important factor, but it must be done by the future cash flow (CF). On the other hand, DCF (Discounted Cash Flow) must be evaluated by the future CF. However, DCF varies greatly according to its assumptions. I show values of corporations in Japan have their points of discontinuity according to their ownership, and that each evaluation result of Intangibles dose not influence the evaluation of the corporation on the whole.
