Small and medium company valuation by discounted cash flow: philosophical and epistemological basis

The majority of experts recognizes the cash flow discount as the best technique to value SMEs. However, there is a divergence in the concepts and criteria that a valuation model must incorporate. neoclassical finance, heiress of logical positivism as an epistemological basis, maintains the efficient...

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Detalles Bibliográficos
Autores: Boza Pró, Germán Alfredo, Ramón Ruffner de Vega, Jeri Gloria
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2020
País:Perú
Institución:Universidad Nacional Mayor de San Marcos
Repositorio:Revistas - Universidad Nacional Mayor de San Marcos
Idioma:español
OAI Identifier:oai:revistasinvestigacion.unmsm.edu.pe:article/18473
Acceso en línea:https://revistasinvestigacion.unmsm.edu.pe/index.php/quipu/article/view/18473
Access Level:acceso abierto
Palabra clave:Acquisitions
cost of capital
finance
cash flow
Mergers
valuation
Adquisiciones
costo de capital
finanzas
flujos de caja
fusiones
Pymes
valoración
Descripción
Sumario:The majority of experts recognizes the cash flow discount as the best technique to value SMEs. However, there is a divergence in the concepts and criteria that a valuation model must incorporate. neoclassical finance, heiress of logical positivism as an epistemological basis, maintains the efficient market hypothesis (EMH) y the capital asset pricing model (CAPM), to calculate the discount rate. On the contrary, behavioral finance, heiress of Husserl's phenomenology, suggests incorporating human behavior or behavior into its valuation models. On taking position, on one way or another, from a philosophical point of view, a valuation model, should lead us to the encounter of truth, justice and fairness in decision making. Both aspects of company valuation, philosophical and epistemological, are addressed in the present research, analyzing the different theories and positions in force, ending with a final position regarding the 2 valuation models of companies currently existing within Neoclassical Finance: the Damodaran Model and the Fernández Model.