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Improvement of the Methods for Assessing the Value of Diversified Companies in View of Modification of the Herfindahl-Hirschman Model

Abstract

In the conditions of the negatively changing economic situation due to geopolitical processes, the problem is becoming urgent of choosing new ways of development in order to preserve financial stability and to increase the value of companies. It is known that diversification is one of the most popular strategies to achieve long-term financial goals of a company. A properly developed strategy, reasonable allocation of resources ensure stability of the company's cash flows during ups and downs in different sectors of economy, make it possible to act more flexibly in the market. In this connection, the problem of choosing the right diversification strategy aimed at maximizing the value of the company is becoming particularly important. This requires answering the following types of questions: how to determine reasonably the degree of diversification of the business? What is the optimal degree of diversification of the company? What impact does it have on the value of the company? It is no secret that one of the main factors that determine the investment attractiveness of the company is its value. Therefore, the account of various factors in the assessment of the company's value is important. The accuracy of reflection of its real value depends on the quality of this assessment.

KSENIA VALERYEVNA EKIMOVA,ALEKSEI ILYICH BOLVACHEV, ZOGRAB MNATSAKANOVICH DOKHOYAN, TAMARA PETROVNA DANKO, ELENA VIKTOROVNA ZAROVA, OLGA LEONIDOVNA SHEMETKOVA, VLADIMIR DMITRIYEVICH SEKERIN

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