Estimation of Capital Values in the Function of Strategic Decision Making

Abstract

In the process of making strategic decisions based on going concern business principle, the managers and
owners of the company impose the need to assess the value of assets and capital. An adequate estimate of the value of
a company based on an opinion on the value of the capital of a company is determined by the terms of the normative
regulatory framework. As such, it is a key assumption for deciding on the further business combination of a company
and changing its business. The initial assumption of determining the value of the capital is the purpose of determining
the value, specificity of the business of the company itself and the analysis of its business performance based on the
financial statements in the previous period. Estimates of value can basically be based on yield, market and cost
methodological concept. According to the selected methodological concept, appropriate methods of determining
values are applied. The aim of the paper is to point out the adequacy and practical application of individual valuation
methods in determining the company's business strategy in the future.