CONSIDERATIONS REGARDING THE ENTERPRISE VALUE’S ANALYSIS BASED ON PATRIMONIAL WEALTH AND STOCK RETURN

Abstract

In the current academic and professional setting, there are further numerous concerns regarding the determination of a real and fair enterprise value, especially when considering the current socio-economic context dominated by speed, complexity and uncertainty, characteristics resulting in a permanent change of context. Both literature and specialty practice offer numerous methodologies, standards and specific indicators to quantify the enterprise value based on certain considerations or assumptions, which makes the methods and techniques used to meet their demands and thus provide an enterprise’s value from their perspective  wherefrom controversy arrises over which method is better or most accurately reflects reality. This paper, developed by academics and practitioners, does not aim to establish criteria to underline the better method, nor to realize an inventory of these methods, but it aims to explain, in a structured way, the possibilities for establishing the enterprise’s value based on its patrimonial wealth  assessment, its market value through stock capitalization respectively. Moreover, the paper focuses on the analysis of the net asset value calculated at the enterprise level, as an expression of patrimonial value (book value) and stock return as an expression of the performance market validation and attractiveness to investors (market value). Finally, it weights the values obtained through both angles and expresses the relationship that must exist between them.