Empirical Fundamental Valuation of Russian Companies: Searching For Strategic Value

Authors

  • Alexander V. Bukhvalov Graduate School of Management, Saint Petersburg State University, Russia https://orcid.org/0000-0001-6358-710X
  • Ekaterina A. Akulaeva Graduate School of Management, Saint Petersburg State University, Russia

Abstract

The paper is devoted to construction a unified formula, which is suitable for evaluation of companies for majority of industries in a national economy. This task is especially important for Russia since just a few dozens of Russian companies have liquidly traded stocks. At the same time many hundred thousand companies need to be valued. Lack of their evaluation is an obstacle for property consolidation in holdings, deals with shares of property in non-traded companies, divestitures, more generally, for private equity market development. A modification of famous Ohlson model for empirical fundamental value is suggested. This model is estimated for Russian data up to 2013. This modification provides a unified formula for evaluation. It is contemplated that the formula is a proxy for strategic value of a firm. The latter notion was recently outlined by Robert Grant though no hint for its evaluation has been suggested before.

Keywords:

fundamental value, Ohlson model, residual income model (RIM), residual earnings model (REM), strategic value

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References

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The List of References in Cyrillic Transliterated into Latin Alphabet

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Published

2014-06-27

How to Cite

Bukhvalov, A. V., & Akulaeva, E. A. (2014). Empirical Fundamental Valuation of Russian Companies: Searching For Strategic Value. Russian Management Journal, 12(2), 3–12. Retrieved from https://rjm.spbu.ru/article/view/211

Issue

Vol. 12 No. 2 (2014)

Section

New Research

License

Articles of the Russian Management Journal are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.

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