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Finance and Credit
 

The main aspects of building a financial model for Russian public companies valuation

Vol. 30, Iss. 5, MAY 2024

PDF  Article PDF Version

Received: 9 November 2023

Received in revised form: 19 February 2024

Accepted: 4 March 2024

Available online: 30 May 2024

Subject Heading: BUSINESS VALUE

JEL Classification: G17, G32, G34

Pages: 1148–1166

https://doi.org/10.24891/fc.30.5.1148

Elena D. SHESTAKOVA Financial University under Government of Russian Federation, Moscow, Russian Federation
edshestakova@fa.ru

https://orcid.org/0000-0002-4117-7975

Subject. The article discusses the core aspects of constructing a financial model to value Russian public companies.
Objectives. The aim is to identify the main aspects and formulate proposals to modify the financial model for a public company valuation in modern conditions.
Methods. The study draws on general scientific methods, like analysis, synthesis, generalization, modeling, the empirical method (description), and theoretical method (formalization).
Results. The paper identifies the main aspects of building special financial models, offers a modification of the financial model for assessing the value of a public company in modern conditions, taking into account the fact of information disclosure, and formulates specific principles of building a financial model for public company valuation.
Conclusions. The findings can be used within the framework of theoretical and scientific-practical substantiation of specialized financial models for valuation, and improvement of tools for value formation of Russian companies on the basis of corporatization.

Keywords: financial model, valuation, market value, initial public offering, public company

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