COMPARATIVE ANALYSIS OF COMPANY VALUATION METHODS IN TURKISH TEXTILE COMPANIES LISTED ON BORSA ISTANBUL

Authors : İsmail Öztanır

Pages : 198-221

View : 23 | Download : 405

Publication Date : 2025-12-31

Article Type : Research Paper

Abstract :In finance literature, company valuation plays a critical role in determining firms’ intrinsic values and guiding investment decisions. This study aims to evaluate the consistency and relationship between different valuation approaches applied to firms in the Borsa Istanbul textile sector. Specifically, the research compares three fundamental valuation methods — the Discounted Cash Flow (DCF) method, the Net Asset Value (NAV) method, and the relative valuation approach based on the Price-to-Earnings (P/E) and Market Value-to-Book Value (MV/BV) ratios — to assess which of these techniques most accurately reflects actual market values. Using data from 2018–2022, firm values were calculated for each method and compared with the firms’ market values. A panel data regression model was employed to examine the relationships between market value (dependent variable) and valuation outcomes (independent variables), while a causality analysis was conducted to test the bidirectional dynamics between variables. Findings indicate that both DCF and NAV methods show the strongest alignment with market value, suggesting that cash-flow-based and asset-based approaches provide more reliable valuation outcomes than relative valuation ratios. Sensitivity analysis further revealed that within the DCF model, firm value is most affected by changes in the weighted average cost of capital (WACC). The study contributes to the literature by empirically comparing valuation methods in a developing market context and identifying the most effective approach for estimating company value.
Keywords : Şirket Değerlemesi, İskonto Edilmiş Nakit Akışı, Net Varlık Değeri, Göreceli Değerleme, Panel Veri Analizi, Tekstil Sektörü

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