PT  - JOURNAL ARTICLE
AU  - Drábek, Michal
AU  - Syrovátka, Pavel
TI  - Enhancing Market Value Estimation for Privately Held Companies: Differentiated Multipliers in the Czech Brewing Industry
DP  - 2024 Jun 30
TA  - European Journal of Business Science and Technology
PG  - 25--46
VI  - 10
IP  - 1
AID - 10.11118/ejobsat.2024.002
IS  - 23366494
AB  - The paper focuses on valuation multipliers for privately held companies, with the aim of developing and applying a methodological procedure to improve the accuracy of estimating the market value. This improvement is achieved through the differentiation of an industry multiplier using financial decomposition. We applied the proposed methodology enhancements to a dataset comprising 50 Czech breweries, estimating their market value using the discounted cash flow method. Importantly, our proposed modification to the methodology is not limited to this sample of breweries; its nature makes it a generally applicable procedure. Our results demonstrate that the application of our proposed procedure significantly enhances the accuracy of market value estimation for privately held companies, yielding an increase of 40-50% compared to the use of the median value.