Problems and peculiarities of the methods for valuation of the fastest-growing companies

Abstract

Approaches and methods for valuation of companies described by a rapid growth of key financial indicators in a short time period have been reviewed. The fastest-growing companies have been formulated as a separate industry for research. The preconditions have been substantiated for considering the fastest growth as the most important factor of value formation at the present stage. The main problems in the fastest-growing companies’ valuation have been identified, and possible solutions have been suggested. The method for valuation of the fastest-growing companies has been focused on the use of specialized multipliers within the comparative approach, as well as on due consideration for the survival rate of companies after the active growth phase and the peculiarities of value formation in the income-based approach.