APPLICATION OF MULTIPLE-BASED METHODS IN VALUATION OF REAL ESTATE DEVELOPMENT COMPANIES

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1 APPLICATION OF MULTIPLE-BASED METHODS IN VALUATION OF REAL ESTATE DEVELOPMENT COMPANIES Konrad Żelazowski, PhD Faculty of Economics and Sociology University of Lodz Abstract The enterprise's market value is one of the main parameters characterizing the condition of the business entity, its development prospects and market position. It is an important criterion considered by managers and investors. Among the wide group of business valuation methods, multiple-based methods of valuation can be distinguished. Their undeniable advantage is the relative simplicity and speed of carrying out the process of valuation. An important condition for their application is a sufficiently developed and mature capital market. The aim of the paper is to present the potential of the application of multiple-based methods in the valuation of real estate development companies. The analysis will be conducted on the basis of the experience of the Polish market. Key words: multiple-based methods, business valuation, real estate development companies. JEL Classification: G32. Citation: Żelazowski K., 2015, Application of Multiple-Based Methods in Valuation of Real Estate Development Companies, Real Estate Management and Valuation, Vol. 23, No. 3, pp DOI: /remav Introduction In modern economies, knowledge is becoming a strategic resource (MIKUŁA 2006). Knowledge and access to information are a prerequisite necessary for building a competitive advantage of business entities (MARCHLEWSKI 2007) and, in a broader context, for stimulating economic growth. The basic economic information characterizing individual assets as well as complex business entities is their value. Knowledge of the enterprise's value is required to make rational decisions in terms of evaluating its efficiency and investment attractiveness, as well as the assessment of its development prospects. The significance of the enterprise's value is also reflected in the management concept of VBM (Value-Based Management), in which all management processes are to lead to an increase in business value and, in the long term, to its maximization. The VBM concept is an expression of expectations on the part of owners of business entities regarding the efficiency of the capital employed and a clear guideline for managers on how to manage the enterprise (NITA 2007, SZCZEPANKOWSKI 2007). The enterprise can be seen as a conglomeration of physical, financial and intellectual resources engaged in conducting business activities. Due to its complexity, the estimation of its value is a difficult process. This applies both to the identification of factors that create business value and the manner in which they are reflected in the process of valuation. The extensive methodology of business entity valuation encompasses asset-based valuation methods, focusing on the assets of the entity undergoing valuation, income-based methods, determining value from the perspective of future incomes projected for the enterprise, comparative methods based on the comparative analysis of the 26 REAL ESTATE MANAGEMENT AND VALUATION

2 enterprise undergoing valuation and similar entities with known market values, as well as mixed methods, which are most often a combination of the aforementioned solutions. 2. The nature of multiple-based methods of business valuation Multiple-based methods belong to the group of comparative business valuation methods. Based on their nature, the enterprise is worth what similar entities are worth. Multiple-based methods therefore reflect the idea of the so-called law of one price, based on which goods with similar characteristics should be sold at a similar price in competitive market conditions (SZCZEPANKOWSKI 2007). The use of multiple-based methods comes down to a search for a proper reference point (similar enterprises) which permits conducting the valuation process. The primary source of information used in multiple-based methods is the capital market, where investors assess the investment attractiveness of companies and estimate their potential by conducted purchase and sale transactions. Literature on the topic, therefore, emphasizes a sufficiently developed and mature capital market as a necessary condition for the application of multiple-based methods. The appropriate level of capital market development determines, among others, the ability to find enterprises similar to the one undergoing valuation, while adequate market maturity, expressing the level of its rationality and efficiency, determines the reliability of the data obtained from the market and thus the reliability of the valuation carried out (JAKI 2004). The valuation process with the application of multiple-based methods is a multi-stage process which consists of (JANISZEWSKI 2011): 1. Selection of enterprises similar to the entity undergoing valuation for valuation purposes. 2. Selection of the appropriate multiple as the basis of valuation. 3. Determination of the multiple value with the use of information from comparable enterprises. 4. Valuation of the enterprise, taking into account the estimated multiple and the determined economic category, which reflects its effectiveness and economic potential. The following formula reflects the concept of multiple-based valuation methods: where: V e M E V e = M * E (1) the value of the enterprise undergoing valuation; the value of the multiple estimated on the basis of characteristics of comparable enterprises; the economic category characterizing the enterprise undergoing valuation. Depending on the adopted multiple formula, multiple-based methods enable the valuation of the entire enterprise as well as its equity. Taking this into consideration, the wide range of multiples can be divided into two basic groups: 1. Multiples of equity valuation, which include: 1) P/E (Price/Earnings) the price per share to annual net earnings per share ratio, 2) P/BV (Price/Book Value) the price per share to book value per share ratio. 2. Valuation multiples of the entire enterprise (equity and net debt), which include: 1) EV/S (Enterprise Value/Sales) the current value of the enterprise to annual sales revenues ratio, 2) EV/EBIT (Enterprise Value/Earnings Before Interest&Taxes) the current value of the enterprise to annual operating income ratio, 3) EV/EBITDA (Enterprise Value/Earnings Before Interest&Taxes, Depreciation and Amortization) - the current value of the enterprise to annual operating income augmented by amortization ratio, 4) EV/FCFF (Enterprise Value/Free Cash Flow for the Firm) the current value of the enterprise to annual cash flows financing the enterprise ratio. It is worth noting that the presented multiples can be estimated on the basis of information derived from various periods. One can therefore speak of multiples estimated using historical data (e.g. as arithmetic means or weighted multiples of the last few years), based on current data, or on the basis of projected values (e.g. 1-3 year forecasts). Each of the solutions has specific advantages and disadvantages. The use of historical data allows to average the multiple value (taking into account a longer term of the enterprise's functioning) and thus avoid the use of non-standard values of multiples in valuation. Multiples calculated for current data allow the current state of the market to be reflected. The lack of references to future years of the enterprise's functioning and its financial performance is a REAL ESTATE MANAGEMENT AND VALUATION 27

3 limitation of both solutions. Multiples calculated for projected values make it possible to reflect the perspective of the continued functioning of the business entity in valuation, however, they are subject to the prediction error (Metody wyceny spółki 2006). In the available literature, there are no clear rules as to the selection of the type of multiple in the process of valuation. One can put forward certain recommendations formulated by valuation practitioners and guidelines derived from theory in terms of the accuracy of specific solutions. Multiples used should properly reflect the main factors determining the value of the enterprise, in this context, the role of the P/E, EV/EBITDA, EV/FCFF multiples is emphasized, taking into account the income potential of the entity undergoing valuation (in the case of negative financial performance of an enterprise, the use of the P/BV and EV/S multiples is suggested). When dealing with different structures of business financing, the application of the EV/S and EV/EBITDA multiples is recommended. In the valuation of manufacturing companies, in which assets are a significant component, the use of the P/BV multiple is suggested, whereas in valuing service companies with high sales revenues, the EV/S multiple plays an important role (NITA 2007). It should be emphasized, however, that the above-presented guidelines are not absolute and the final choice of the multiple remains up to the valuer. 3. Multiple-based methods in valuation practice Multiple-based methods are among the most commonly used methods for the valuation of business entities (DEMIRAKOS, STRONG et al. 2004). The surveys conducted in 2012 by F. Bancel and U. Mittoo among European financiers and experts in the field of valuation indicate that these methods are as popular as income-based ones (BANCEL, MITTOO 2014). Eighty percent of the respondents reported the regular use of multiple-based methods in conducted valuations (compare: Fig. 1). Fig. 1. Popularity of business valuation methods applied. Source: (BANCEL, MITTOO 2014). In addition to the above, a study conducted in 2013 by the consulting firm KPMG for the Australian market confirms the importance of multiple-based methods in valuation. Among the surveyed experts in the area of banking, investment advisory and financial services, 48% declared that they always used multiple-based methods when carrying out valuations, and another 48% used this approach on an irregular basis. For comparison, the income-based approach is always used in valuation by 65% of the respondents, and 35% of the specialists use it irregularly (Valuation Practices Survey 2013). This rather significant popularity of multiple-based methods in the practice of valuation is related to a number of advantages they posses, including: 1. Simplicity of calculation and interpretation. In relation to other methods of business valuation (including the time and labor-intensive DCF method), multiple-based methods are characterized by lesser complexity in terms of the assumptions made and procedures for value estimation. This is the main advantage emphasized by valuation practitioners encouraging the 28 REAL ESTATE MANAGEMENT AND VALUATION

4 use of this solution. In addition, these methods are easy to understand for the recipients of valuations (Global Equity Research 2001). 2. Reflection of investor behavior. Multiple-based methods make use of indicators often used by investors to assess the investment attractiveness of listed companies. Their application in valuation allows to reproduce the behavior of buyers and sellers with a certain degree of simplification (Global Equity Research 2001). 3. A reference to the market valuation of business entities. Market values of similar companies, i.e. values verified by the market and its participants, are the reference point in valuation with the use of multiple-based methods. This is an expression of the desire to objectify the valuation process (Metody wyceny spółki 2006). The use of multiple-based methods, however, involves certain limitations and imperfections that each valuator should be aware of. The weaknesses of multiple-based methods include: 1. Difficulty in choosing comparable enterprises. Effectiveness and credibility of multiple-based methods is closely related to the level of comparability of the enterprise undergoing valuation and entities which are the point of reference in the valuation process. Due to the large diversity of enterprises operating within the same industry, the choice of similar companies is associated with the adoption of certain assumptions that define the degree of similarity. Too restrictive assumptions may indicate a lack of similar enterprises and the elimination of multiple-based methods from the valuation process. Too liberal assumptions can lead to the inadequate comparability of business entities, thereby impacting the reliability of valuation (CASSIA, PALEARI et al. 2004). 2. Difficulties in selecting the appropriate multiple. The diversity of multiples used in practice is associated with the lack of a universal character (LIE, LIE 2002). The type of appropriate multiple is dictated by, among others, the character of the enterprise (production, trade, service), the industry in which it operates, its financial performance, dynamics of business development and structure of financing. Accounting regulations in force also influence the choice of the multiple. Enterprises using the available accounting solutions can shape the financial categories that constitute a component of multiples. The enterprises' influence on such values as operating income or net profit leads to a situation where multiples calculated on their basis are no longer comparable and, therefore, cease to reliably reflect the economic and financial situation of companies. 3. Dependence of valuation reliability on the level of capital market development. The source of information used in valuation based on comparative methods is the capital market, therefore the accuracy of the valuation process and the credibility of the result obtained depend on the quality of market information. For this reason, the use of multiple-based methods in poorly developed markets is not advisable. 4. The static nature of valuation. Valuation based on multiple-based methods usually takes into account the most current information and the state of the market, as well as the characteristics of the industry in which the enterprise undergoing valuation functions. Arguments against this solution are the lack of references in valuation to the functioning of the business entity in the future periods and the possibility of its development or reduction in the scale of its operations. One way to mitigate this limitation is the use of multiples estimated for the projected performance of the enterprise in valuation, though this solution is burdened with prediction errors. In valuation practice, the most commonly used multiples are P/E, P/BV and EV/EBITDA. The report prepared in 1999 by Morgan Stanley Dean Witter for the European market indicates that 55% of the valuators used the P/E multiple, the use of the EV/EBITDA multiple was reported by almost 35% of the respondents, whereas approx. 18% of the respondents indicated the use of the P/BV multiple (FERNANDEZ 2015). The study conducted by F. Bancel and U. Mittoo in 2012 indicates EV/EBITDA as the most popular multiple, the second popular solution was the P/E ratio (BANCEL, MITTOO 2014) (compare: Fig. 2). REAL ESTATE MANAGEMENT AND VALUATION 29

5 4. The use of multiple-based methods in valuation of real estate development companies example from the Polish market Due to the nature of development activity (ZAŁĘCZNA, ANTCZAK 2012), the cyclical character of the manner in which the entire industry functions, valuation of real estate development companies by means of traditional solutions (asset-based and income-based methods) is a complex and timeconsuming process. Therefore, the question arises about the possibility of using simpler solutions in the form of multiple-based methods, and about the reliability of the results obtained. The following analysis was performed to estimate the usefulness of multiple-based methods in the valuation of real estate development companies listed on the Warsaw Stock Exchange. Fig. 2. Percentage of valuators using a particular multiple. Source: (BANCEL, MITTOO 2014). Companies included in the WIG-developers index are characterized by a fairly large diversity. These are entities with capitalization in excess of 2.5 billion PLN, as well as those for which it is lower than 30 million PLN. They conduct widely understood development activities, including residential and commercial projects (office buildings, retail, hotel, warehouse properties), from the construction phase to rental, sales and property management. In order to increase the comparability of the companies on which the study concerning the suitability of multiple-based methods in their valuation was based, the analysis was restricted to residential real estate developers. These are companies whose major area of activity involves residential housing investments carried out in the domestic market, listed on the Warsaw Stock Exchange in the years The study covered the following companies: 1. J.W. Construction Holding S.A. 2. Polnord S.A. 3. Ronson Europe N.V. 4. Robyg S.A. 5. Lc Corp S.A. 6. Dom Development S.A. 7. Echo Investment S.A. In assessing the effectiveness of multiple-based methods, the three most common solutions were taken into account, i.e. the P/E (Price/Earnings), P/BV (Price/Book Value) and EV/EBITDA (Enterprise Value/Earnings Before Interest&Taxes, Depreciation and Amortization) multiples. The choice of multiples is justified not only by their popularity in valuation practice but also by empirical research proving their effectiveness in the valuation of companies in the broadly understood real estate sector (HARBULA, 2009). The study covered the years Table 1 presents the basic characteristics of the multiples. The preliminary assessment of the suitability of selected multiples in valuation concerns the analysis of their diversity. The wide variation in the value of the multiples is a signal of problems with the comparability of enterprises and the impact of other factors (other than those included in the valuation) on their value. Literature emphasizes that, along with an increase in the diversity of 30 REAL ESTATE MANAGEMENT AND VALUATION

6 multiple values, the legitimacy of their use in valuation and the reliability of the estimated value decreases (PRATT 2005). Taking into account the above criterion, the P/BV multiple, characterized by the lowest coefficient of variation in almost all years of the analysis, is the solution that presents the greatest application potential. Year Characteristics of multiples for selected real estate development companies P/E P/BV EV/EBITDA Table 1 Me AM CV Min Max Me AM CV Min Max Me AM CV Min Max % % % % % % % % % % % % Me median, AM arithmetic mean, CV coefficient of variation, Min minimum value, Max maximum value Source: The author's own compilation based on financial reports of the companies, stock exchange yearbooks and data from the Notoria database. In order to verify the accuracy of the valuation of real estate development companies with the use of these multiples, the process of estimating their value was carried out in subsequent years ( ). The value of each of the companies was estimated on the basis of the formula (1) using the multiples calculated based on information from similar companies. The analysis used the median and the arithmetic mean of multiples of companies comparable to the enterprise undergoing valuation. The estimated value of the enterprise s equity was compared to the market value of equity calculated at the end of each subsequent period (based on the current data). The error rate was calculated according to the following formula: (2) where: - valuation error, the value of the enterprise's equity at the end of the year, - the value of the enterprise's equity estimated with the use of a multiple-based method. With such an adopted formula of valuation error measurement, positive values indicate the scale of the underestimation of the enterprise's value, whereas negative values determine the level of its overvaluation. The error rate for the individual multiple-based methods is presented in Table 2 and 3. Valuation errors for selected multiple-based methods (arithmetic mean) Table 2 Company Polnord Robyg Ronson LcCorp Domdev JWConstr Echo P/E multiple % -2% -33% -11% 51% -42% -9% % 8% 76% -95% -36% 0% -84% % 40% -78% -62% -29% 67% -122% % -15% 10% -167% -7% -7% -227% Mean 65% 16% 49% 84% 31% 29% 110% P/BV multiple % -26% -14% -66% 24% 48% 0% % -1% -5% -53% 44% 7% 20% % 22% -29% -27% 43% -45% 37% REAL ESTATE MANAGEMENT AND VALUATION 31

7 % 38% 21% -50% 46% -81% 12% Mean 179% 22% 17% 49% 39% 45% 17% EV/EBITDA multiple % -29% -20% -63% 8% -160% 52% % 2% % -650% -889% -1838% % -26% 22% 26% -51% -92% % 57% -61% -11% -106% -202% Mean 510% 33% 33% 350% 180% 312% 697% Source: Author's own complication. Valuation errors for selected multiple-based methods (median) Table 3 Company Polnord Robyg Ronson LcCorp Domdev JWConstr Echo P/E multiple % 8% -18% 1% 49% -25% 4% % 39% 76% -50% 5% 33% -42% % 54% -41% -30% 3% 69% -73% % -6% 20% -130% 7% 7% -178% Mean 49% 27% 39% 53% 16% 33% 74% P/BV multiple % -16% -2% -49% 32% 50% 14% % -2% -7% -50% 39% 8% 20% % 34% -28% -26% 49% -42% 44% % 39% 25% -67% 45% -97% 14% Mean 171% 23% 16% 48% 41% 49% 23% EV/EBITDA multiple % -20% -12% -49% 20% -130% 64% % % -41% -24% -174% % -12% 45% 45% -44% -80% % 68% -8% 21% -45% -119% Mean 203% 22% 42% 60% 32% 70% 119% Source: Author's own complication. The analysis conducted does not allow to clearly indicate the optimal multiple in the valuation of real estate development companies. Both the P/E and P/BV multiples are characterized by a similar rate of valuation errors. In most cases, the application of a multiple median of comparable companies led to an increase in the accuracy of valuation, which results from the lower sensitivity of this measure to extreme values of multiples 1. Valuations carried out with the use of the EV/EBITDA multiple were burdened with the highest error rate; in their case, extreme overestimation of the value of the company could also be observed (e.g. the valuations of Polnord and Echo Investment). Due to the lowest accuracy of valuation based on the EV/EBITDA multiple, it was not examined in the further research procedure. The use of average multiple values in valuation is associated with certain limitations. The calculated multiples do not include the specific characteristics of individual companies and their impact on the level of the multiple. In the available literature, one can find a number of studies on the factors differentiating the level of the given multiple among enterprises operating in the same industry (BEAVER, MORSE 1978). In order to increase the accuracy of valuation, the P/E and P/BV multiples, including their determinants recognized as having a significant influence on their level, were estimated (HARBULA 2009 and CHENG, MCNAMARA 2000). In the case of the P/E multiple, the structure of the company's financing (the company's debt to equity ratio) was taken into account, 1 The study also assessed the accuracy of valuations based on the arithmetic mean value of multiples of similar companies, excluding extreme values. Such a solution, however, did not increase the accuracy of those valuations. 32 REAL ESTATE MANAGEMENT AND VALUATION

8 assuming that an increase in the enterprise's debt leads to increased financial risk and a decline in the multiple value with other conditions unchanged. In the calculation of the P/BV multiple, the return on equity (ROE) was taken into account, based on the assumption that the higher the return on equity in the enterprise, the higher its investment attractiveness and the higher the P/BV multiple. Adjusted multiple values were determined based on the following regression: (3) where: - the company's Price/Earnings multiple, - the company's debt to equity ratio, - random component. (4) where: - the company's Price/Book Value multiple, - the company's return on equity, - random component. Differences in the market value of equity of the companies and the value estimated using the adjusted multiples are shown in Table 4. Valuation errors for adjusted values of multiples Table 4 Company Polnord Robyg Ronson LcCorp Domdev JWConstr Echo P/E multiple D/E adjusted % 0% -27% -7% 43% -38% -9% % 14% 62% -115% -22% 10% -49% % 17% -4% 32% -16% 21% -152% % 51% -38% -155% -13% 32% -141% Mean 61% 21% 33% 77% 24% 25% 87% P/BV multiple ROE adjusted % -11% -17% -27% 36% 3% -1% % 6% 28% -45% 22% 14% -4% % 30% -25% -21% 21% 13% -11% % 27% 26% -53% 34% -29% -35% Mean 81% 19% 24% 36% 28% 15% 13% Averaged valuations based on P/E and P/BV methods (D/E and ROE adjusted) % -5% -22% -17% 39% -18% -5% % 10% 45% -80% 0% 12% -26% % 24% -15% 5% 3% 17% -81% % 39% -6% -104% 11% 1% -88% Mean 54% 20% 22% 51% 13% 12% 50% Source: The author's own complication. Adjusted multiples allowed to obtain valuations of greater accuracy. This is primarily noticeable in the case of the P/BV multiple. The results obtained are justified by also including additional characteristics of enterprises such as their structure of financing and the return on equity in the valuation, on top of information about the level of multiples in similar enterprises. This leads to the adjustment of the level of the multiple to the specificity of the entity undergoing evaluation. REAL ESTATE MANAGEMENT AND VALUATION 33

9 Averaging of the conducted valuations using adjusted multiples additionally leads to a reduction in the valuation error rate. 5. Conclusions Multiple-based methods are an attractive solution in terms of the valuation of business entities, especially due to the simple procedure for value estimation compared to other methods, e.g. the DCF method. This advantage is particularly important in the valuation of large and complex enterprises, such as real estate development companies. The use of multiple-based methods in the valuation of real estate development companies is not as popular, however, as in the case of other entities (e.g. banks). This is due, among others, to the nature of development activity, characterized by a long period of implementation of investment projects and a distinct time-shift between expenditure incurred and revenue obtained from a diverse range of business activities and various markets in which the entities operate. These factors limit the choice of entities similar to the one undergoing valuation, which constitute the basis for valuation. The analysis conducted for the Polish market does not exclude the use of multiple-based methods in the valuation of real estate development companies. It indicates, however, significant differences in the accuracy of the results obtained. The accuracy of valuation is influenced by, among others, the choice of the multiple structure, the manner in which it is calculated based on data concerning similar enterprises (median, arithmetic mean) and any possible adjustments of the multiple. Valuations conducted using the EV/EBITDA multiple were burdened with the largest error, better results were obtained for the P/E multiple, adjusted for differences in the return on equity of the companies analyzed, the P/BV multiple, and averaged valuations for the P/E and P/BV multiples. It should be noted, however, that the results are not conclusive. The indicated solutions, despite their higher or lower credibility, carry the risk of significant value overestimation or underestimation. Due to fluctuations in the accuracy of valuation with the use of the analyzed multiples, they should not be the only or main method of business valuation. Instead, they should be a point of reference for other solutions, including revenue-based and asset-based methods. 6. References BANCEL F., MITTOO U. R., The Gap between Theory and Practice of Firm Valuation: Survey of European Valuation Experts (March 27, 2014). BEAVER W., MORSE D., What Determines Price-Earnings Ratios?, Financial Analysts Journal July/August CASSIA L., PALEARI S., VISMARA S., The Rise and Fall of Europe s New Stock Markets, Advances in Financial Economics, Volume 10, 2004, pp CHENG C.S., MCNAMARA R., The Valuation Accuracy of the Price-Earnings and Price-Book Benchmark Valuation Methods, Review of Quantitative Finance and Accounting, 15 (2000): pp DEMIRAKOS E.G., STRONG N., WALKER M., What Valuation Models Do Analysts Use? Accounting Horizons, Vol. 18, No. 4 (2004), pp FERNANDEZ P., Valuation Using Multiples: How Do Analysts Reach Their Conclusions? (January 13, 2015) Global Equity Research, Valuation Multiples: A Primer, November 2001 UBS Warburg, p. 4. HARBULA P., Valuation Multiples: Accuracy and Drivers Evidence from the European Stock Market, Business Valuation Review, Vol. 28, No. 4, JAKI A., 2004, Wycena przedsiębiorstwa. Przesłanki, procedury, metody, (Company Valuation. Premises, procedures, methods) Oficyna Ekonomiczna, Kraków, p JANISZEWSKI S., Zastosowanie wyceny metodą mnożnikową w transakcjach fuzji i przejęć, (Application of multiple-based valuation methods in mergers and acquisitions), Kwartalnik Nauki o Przedsiębiorstwie 2011/2. LIE E., LIE H. J., Multiples Used to Estimate Corporate Value, Financial Analysts Journal Vol. 58 No. 2, Mar/Apr MARCHLEWSKI K., Kapitał intelektualny jako źródło wartości, (Intellectual capital as a source of value) Studia i Materiały Towarzystwa Naukowego Nieruchomości Vol. 15 No. 3-4, Olsztyn, MIKUŁA B., 2006, Organizacje oparte na wiedzy, (Knowledge-based organisations), Wydawnictwo Akademii Ekonomicznej w Krakowie, Kraków, p. 22. NITA B., 2007, Metody wyceny i kształtowania wartości przedsiębiorstwa, (Methods of company valuation and value determination) PWE, Warszawa, pp REAL ESTATE MANAGEMENT AND VALUATION

10 Metody wyceny spółki perspektywa klienta i inwestora (Methods of company valuation, client and investor perspective) RED. M. PANFIL, A. SZABLEWSKI, 2006, Poltext, Warszawa, p. 48. PRATT S. P., 2005, The Market Approach to Valuing Businesses, New Jersey, John Wiley&Sons, p SZCZEPANKOWSKI P., 2007, Wycena i zarządzanie wartością przedsiębiorstwa, (Company valuation and value management) PWN, Warszawa, pp , 233. Valuation Practices Survey 2013, KPMG, p. 3. ZAŁĘCZNA M., ANTCZAK A., Prawne i finansowe uwarunkowania działalności deweloperskiej na polskim rynku mieszkaniowym, (Legal and financial conditions of developers activity on the residential market), Studia i Materiały Towarzystwa Naukowego Nieruchomości Vol. 20 No. 3, Olsztyn, REAL ESTATE MANAGEMENT AND VALUATION 35