MODELING OF INCOME AND INVESTMENT FLOWS IN THE VALUE-BASED CORPORATE MANAGEMENT SYSTEM

The article examines the issues related to the valuation and management of the company value. It justifies the need to use economic and mathematical modeling in estimating the value of companies for the purpose of managing their value. Proposed are the models for calculating cash flows based on the flow of income and investment, calculating the weighted average price of invested capital based on the equality of the results of applying the discounted cash flow method to the business valuation and the method of added economic value, calculating the factors influencing the flow of income and investment based on the structural change method taking into account deviation from the average one. It is shown that the models based on income and investment flows allow a more objective and reasonable implementation of the forecast calculations of the company’s cash flows, which are necessary in assessing its value. The developed models of cash flows and the calculation of the weighted average cost of invested capital were tested on the real data of three Russian high‑tech companies. The sample of enterprises covered a wide range of companies with revenues are above 2 billion rubles: the industry‑leading company, the company in the middle of the selected range, and the company at the bottom of the range. The calculations made it possible to analyze and compare the key performance indicators of these enterprises: the internal rate of return, Tobin’s ratio, the fundamental value of the company, the amount of equity in the capitalized valuation, the effective profit tax rate, etc. The indicators were classified according to their factorial influence on the final value of the company. Conclusions about the need to use the cost approach to interpret the results of financial and economic activities of companies were made, since the calculations made it possible to conclude that the traditional indicators of financial and economic analysis do not allow to fully assess the result of the enterprise. The proposed valuation and cost management models for companies allow for analytical calculations in an automated format.

modeling of company value, value‑based management, company value, business value, fundamental value, company valuation, invested capital, income and investment flows, cash flows, company value factors, weighted average cost of capital, economic value added, factor analysis, method structural shifts.

Shcherbakova N. A., Shcherbakov V. A. Modeling of income and investment flows in the value-based corporate management system. Business. Education. Law, 2019, no. 2, pp. 217–223. DOI: 10.25683/VOLBI.2019.47.215.