Truncated distributions of valuation multiples: an application to European food firms
type: Item
instance of: scholarly article
title: Truncated distributions of valuation multiples: an application to European food firms
zbMATH Open document ID: 1176.90382
DOI: 10.1504/IJMOR.2009.026275
author: Javier Ribal
author: Ana Blasco
author: Baldomero Segura
published in: International Journal of Mathematics in Operational Research
publication date: 2009-10-12T00:00:00Z
review text: Summary: Company valuation is increasingly used in company management for various purposes. However, in Spain, information that is useful for small and medium-sized enterprises (SMEs) is non-existent. In order to broaden this information, a mass model for valuation of companies is proposed to enable valuation multiples to be obtained. This model has been applied to SMEs in the food sector in Spain. However, the asymmetry of the distributions obtained causes an upwards bias of the mean multiples and makes it difficult to establish statistically significant differences between the distributions. To solve this problem, an algorithm to eliminate outliers has been designed which enables the most probable range of values to be obtained for each multiple. The multiples obtained are compared with the multiples for European food companies listed on the stock market, revealing statistically significant differences.
Mathematics Subject Classification ID: 90B90
Mathematics Subject Classification ID: 90B30
zbMATH DE Number: 5613375
zbMATH Keywords: asymmetric distributions
zbMATH Keywords: DCF
zbMATH Keywords: discounted cash flow
zbMATH Keywords: firms valuation
zbMATH Keywords: food industry
zbMATH Keywords: truncated distributions
zbMATH Keywords: valuation multiples
zbMATH Keywords: company valuation
zbMATH Keywords: Spain
zbMATH Keywords: small and medium-sized enterprises
zbMATH Keywords: SMEs
zbMATH Keywords: Europe
MaRDI profile type: Publication
full work available at URL: ijmor.2009.026275
OpenAlex ID: W2065157935
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description: scientific article; zbMATH DE number 5613375