THE PERPETUITY VALUE IN FIRMS’ EVALUATION IN BRAZIL
DOI:
https://doi.org/10.11606/rco.v8i20.55434Keywords:
Firms’ Evaluation, Terminal Value, public offer to acquire shares.Abstract
Maximizing the value of the business is the main goal of the firms’ management. This paper analyzes the impact of the terminal value on the firm’s value evaluation reports, and has as object of study the public offer to acquire shares for the years 2005 to 2009. The assumption is that the terminal value has a greater participation in the economic value of the firm than the present value of the period that was projected, which is correlated with the firm’s activity sector and with the period of time that has been considered for the predictable forecasts. The empirical tests have been made using descriptive statistic, measures of non-central tendency and cluster analysis, which the expectancy was that the terminal value had had greater percentage participation in the estimated economic value of the firm than the present value in the explicit forecast, which does not make up the greatest part of the evaluated firm’s value, moreover, for construction/transportation sectors and public utility are not possible to assert a homogeneity on the valuation of the firms’ perpetuity and for the 10 years explicit projected period there is no difference in the terminal value to one company to another.
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