Challenges and approaches in international company valuation - Case study PUMA AG (PDF)

The valuation of companies is a highly conflict-loaded theme in economical theory and practical usage. But considering the rising transaction rates for companies and the en-hancing presence of companies on international stock-markets a generally accepted valuation-method for companies is needed. Within this the question has to be answered whether a company should be valuated objectively, what means which value does it provide to anyone, or if the company should be valuated subjectively what means which value does it provide to someone's individual aims. But regardless to these more theoretical problems the more practical valuation methods will be displayed in this paper.
The discounted cash flow which is common in the USA has become more and more standard by the onwarding globalization as it is strongly stock-market oriented. The net asset value and net present value concepts that were long time preferred in Germany have lost relevance compared to the discounted cash flow but are still important. This paper will take a close look at these valuation-concepts but first some points are given about valuation-motives and valuation-functions before a case study will show how company valuation may work.