Simulation-Based Business Valuation: Methodical Implementation in the Valuation Practice

The simulation-based company valuation values a on the basis of risks actually present in without having to derive them from capital market data. takes into account imperfections, such as probability insolvency or lack diversification, and fulfils legal requirements auditing standards for valuation. is an alternative CAPM-based valuation, which, under assumption perfect markets, derives through comparisons. A business has many advantages particularly suitable valuing medium-sized companies, start-ups, companies crisis, integrating country-specific valuations. Due internationally widespread use CAPM, still rarely used practice. This article shows which formulas are necessary application These both certainty equivalent method risk premium method. In concrete example, planning carried out, derived applied way that allows transfer cases It shown lead identical values.