FIRM VALUATION WITH DATA ENVELOPMENT ANALYSIS: BORSA IṠTANBUL EXAMPLE

Abstract

Objective of this study is to present an example of firm valuation with Data Envelopment Analysis (DEA), which is an alternative and new firm valuation method, and to contribute this limited field of research area with new findings. With this objective in mind, after giving information about the theory of valuation, market-based valuation, DEA and methodology of firm valuation with DEA, BIST 100 indexed firms in Borsa Istanbul are valued with DEA in this study. Results shows that 69% of the estimated value ranges and 73% of the maximum values estimated cover the market values of the relevant firms. It can be said that this method, which is understood to have more successful estimation results in case the number of firms in peer groups increases, is a very useful method for testing the results obtained from other firm valuation methods.

Keywords

• valuation
• Data Envelopment Analysis
• market-based valuation approach
• Borsa İstanbul