Journal of Science and Innovative Development ISSN 2181-4317

PROBLEMS OF USING THE METHOD OF DISCOUNTED CASH FLOWS FOR EVALUATING THE CAPITAL COST OF JOINT-STOCK COMPANIES

Худойқулов Хуршид Хуррамович February 25, 2020

Abstract

<p>Pe article outlines the theoretical aspects of using the discounted cash Qow method to evaluate&nbsp;the capital cost of a joint-stock company with special emphasis on the use of the relative income method used in&nbsp;developed countries. In particular, based on the data of the joint-stock company &laquo;Qvartz&raquo; for the period Rom&nbsp;2015 to 2018, the market value, book value and dividends of joint-stock companies were analysed, and the market&nbsp;value of the capital calculated. In addition, the study provides the analysis of multiplier ratios that are widely used in&nbsp;the world in evaluating the investment aSractiveness of joint-stock companies. Pis, in turn, reQects a fundamental&nbsp;analysis in assessing the cost of capital of a joint-stock company. Pe study identiTes the existing problems in using&nbsp;the discounted cash Qow method in evaluating a joint-stock company and develops scientiTc proposals and practical&nbsp;recommendations for their solution.</p>