Category: Evaluation of securities and property rights

One of the most difficult but at the same time the most interesting kind of work in our profession is valuation of securities. This activity requires from the evaluator knowledge not only in specific areas related to different types of property rights. In addition to a thorough understanding of what are the stocks, bonds, bills, investment certificates and other securities, it is necessary to have sufficient experience in determining the value of «ordinary» property. After all, often the valuation of stocks or corporate rights involves the revaluation of all assets that are present on the balance sheet of the enterprise.

Evaluation of corporate rights – the topic is very extensive. This is due to the fact that all enterprises are different and always require the appraiser individual approach.

Most often, customers want to know first of all how much are (at least tentatively) our services to determine the cost of the share of the authorized capital. And very surprised when appraisers answer that there are no average prices, because the amount of work in each case is different.

More about this can be found in the main thematic article in this category. Here we just once again draw the attention of customers, that the evaluation of a small enterprise, which has only a table, chair and laptop on the balance sheet – is something one. Determining the market value of a company that owns real estate throughout Ukraine, a fleet or a large number of other assets – something else. It should also be borne in mind that the appraiser should also take into account other performance indicators of the enterprise: accounts receivable and payable, financial indicators for profit or loss, and so on.

And, of course, do not link the market value of corporate rights to the size of the authorized capital and the member’s share in it. The size of the authorized capital is a historical fact. Only at the moment of creation of the enterprise its value is approximately equal to the size of the authorized capital. Further in the course of economic activity, the value of the enterprise is constantly changing, and the size of the authorized capital remains the same. Unless the founders decide to increase it, but this, again, a different story.

Stock assessment – service which takes a special position in the activity of any appraisal company. Its uniqueness lies in the fact that in most cases, in order to carry out such evaluation of securities the appraiser needs to be sufficiently deep into the business processes in the enterprise. The majority stocks price is influenced by a multitude of factors, all of which must be considered.

During the work, all data from the balance sheet of the enterprise and its financial results report are analyzed. Here, all sections of the balance sheet play an important role. Special attention is paid to non-current assets, including fixed assets, non-material asset and investment. Also, during the valuation of stocks, attention should be paid to the accounts receivable and payable of the enterprise. And also there is often after revaluation of assets and liabilities, the result is significantly different from the nominal value.

In addition to the analysis of property, property rights and obligations of the enterprise in the course of determining the value of stocks, as already mentioned, it is necessary to understand the business processes of the enterprise. After all, it is obviously categorically wrong to treat a running company that generates profit as a simple set of assets and liabilities.

Since all issuers are unique in their own way, the way in which such property rights are defined and assessed varies greatly from case to case. The most common questions in determining the value of stocks that arise are disclosed in our collection of thematic articles. These materials are referred to below.

So if you do not find the right information, or if you simply do not have the time or the desire to look for it :-) You can just contact with us. We look forward to responding to your question.