Open AccessMETHODS AND APPROACHES TO ASSESSING INVESTMENT ATTRACTIVENESS
Author(s) -
Надія Проскурніна,
Yevheniia CHORNOMORD
Publication year - 2022
Publication title -
ekonomìka ukraïni
Language(s) - English
Resource type - Journals
eISSN - 2522-9478
pISSN - 2522-9303
DOI - 10.15407/economyukr.2022.04.028
Subject(s) - attractiveness , investment (military) , valuation (finance) , business , open ended investment company , separately managed account , value (mathematics) , economics , return on investment , industrial organization , finance , production (economics) , microeconomics , computer science , psychology , politics , political science , psychoanalysis , law , machine learning
The most important aspect of making any investment decision is assessing the investment attractiveness of the investment object. Investment decisions are one of the most difficult tasks in terms of the selection procedure. They are based on a multivariate, multicriteria assessment of a number of factors and trends that often operate in different directions. The investment attractiveness of the enterprise is used as an integral characteristic of investment opportunities, which is formed by the assessment of the expediency of investing in a particular business entity for a certain period of time. Knowledge of the market value allows the owner of the object to improve the production process, to develop a set of measures aimed at increasing the market value of the enterprise. Periodic valuation improves management efficiency and thus prevents bankruptcy and destruction. Practical methods of assessing the investment attractiveness used by leading Western consulting firms and investment companies are considered a trade secret, inaccessible to the general public and not adapted to Ukrainian economic conditions, which indicates the relevance of the study of this problem. The essence of investment attractiveness of the enterprise is determined, the critical analysis of methods for its estimation is carried out. In the current economic conditions, there are several approaches to assessing the investment attractiveness of enterprises. The first is based on indicators of financial and economic activity and competitiveness of the enterprise. The second uses the concepts of investment potential, investment risk and methods of investment projects evaluation. The third is based on the assessment of enterprise value. Each approach and each method has its advantages, disadvantages and limits of application. The more approaches and methods will be used in the evaluation, the higher is the probability that the final value will objectively reflect the investment attractiveness of the enterprise. The advantages and disadvantages of each method are identified, practical recommendations for choosing a particular method in investment decision-making process are given.