Open AccessThe art of valuation of early stage companies
Author(s) -
Sebastian Wieczorek,
Jakub Woźniak
Publication year - 2019
Publication title -
kwartalnik nauk o przedsiębiorstwie
Language(s) - English
Resource type - Journals
eISSN - 2719-3276
pISSN - 1896-656X
DOI - 10.5604/01.3001.0013.4793
Subject(s) - valuation (finance) , scope (computer science) , stage (stratigraphy) , actuarial science , business , value creation , economics , operations management , marketing , accounting , industrial organization , computer science , paleontology , biology , programming language
Valuing an early stage companyis a big challenge mainly because ofthe short history, limited scope or lack offinancial data and many uncertain factorsthat impact its future development. Usually,the younger the company, the moredifficult it is to valuate it which is morelike art than science. The article presentstraditional valuation methods and theirvariations along with alternative ways toestimate the value of young companies.