The increase in the value of companies in the construction sector
Keywords:
enterprise value, economic value added, the cost of equity, cost of debt, the weighted average cost of capitalAbstract
The purpose of this article is to evaluate the ability of construction companies to the creation of added value. The measure of value added generated by the company is the economic value added EVATM. It is a measure describing the increase or decrease in value of the company during a period. The paper consists of two parts. In the first part, the paper presents the methodology of measuring the value of the company, and in the second part, the methodology used to determine the value of selected construction companies. Construction companies have the ability to create added value in times of favourable economic conditions and the stock exchange and the loss of the value added in a period of economic downturn on the capital market.
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