The Expertise on the Valuation Process Applied to the Discounted Cash Flows

  • Anna Maria Gil-Lafuente
  • César Castillo-López
Chapter
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 675)

Abstract

The aim of this paper is to contribute to the analysis on how to measure the value of a company through different techniques which have been used in the literature. We propose a methodology based on the expertons and fuzzy logic. We have investigated different applications of fuzzy methodology, with the aim of deciphering what could work best to determinate the value of a company in the process of valuation. Following the theory of the expertons, we have used the discounted cash flow method to assess organizations. The theory of the expertons is considered, according to the studied literature, an extension of the concept of probabilistic set for uncertain environments, which cannot be measured with exact numbers, but could be measured with numeric intervals. The conclusions in the paper will allow future academic researchers one step forward in the eradication of uncertainty on traditional methods of business valuation, through the application of the fuzzy logic algorithms presented in this article, allowing us to move one step beyond in the valuation of companies.

Keywords

Valuation of companies Uncertainty estimation Subjective variables Probabilistic sets 

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Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Anna Maria Gil-Lafuente
    • 1
  • César Castillo-López
    • 1
  1. 1.Faculty of Economics and BusinessUniversity of BarcelonaBarcelonaSpain

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