Stanovení hodnoty společnosti VODOSTAV OSTRAVA, spol. s r. o.

Abstract

The aim of this thesis is to estimate the market value of the company VODOSTAV OSTRAVA, spol. s r. o., to the date of 31st December 2010. For a possible sale to an unspecified buyer, the company VODOSTAV OSTRAVA, spol. s r. o. will be measured by two-stage method DCF-Equity, flat net income capitalization method and two-stage method of analysis of capitalized net income, followed by sensitivity analysis. The thesis is divided into five chapters. The first chapter contains an introduction. The second chapter views the theoretical approach and the process of business valuation. Specifically you can find the definition of the company including value categories there. Furthermore, it is explained how the business valuation is made, from the description of data collection, through strategic analysis, financial analysis, SWOT analysis, financial plan to the final determination of company’s value made by selected methods. This chapter also describes the sensitivity analysis. In the third chapter the characteristics of the company VODOSTAV OSTRAVA, spol. s r. o. has been stated. In the fourth chapter a determination of company’s value is made by the selected yield methods including sensitivity analysis. The fifth chapter contains conclusion and summary. In context of determination of VODOSTAV OSTRAVA, spol. s r. o. value a strategic analysis and a financial analysis was first completed. Consequently the results obtained from the strategic and financial analyses are reflected in the SWOT analysis. Based on these analyses it was possible to assess the current development of the company and also to estimate the development of the company in future years. We can say that the company VODOSTAV OSTRAVA, spol. s r. o. is financially healthy. The company was doing well in the past and has a positive disposition for future development with the assumption of “going concern”. Afterwards a long-term financial plan for years from 2011 to 2015 was constructed. Consequently, the value of the equity of the company VODOSTAV OSTRAVA, spol. s r. o. was determined by two-stage DCF-Equity method, by fixed method of capitalized net income and by two-stage method of analysis of capitalized net income, while capital costs were determined according to the modular model that uses the Ministry of Industry and Trade of the Czech Republic. Finally, a sensitivity analysis was performed with two-stage method DCF-Equity and two-stage method of analysis of capitalized net income.