Specifics of Company Valuation of IT Companies

The evaluation of companies poses fundamental challenges on science and praxis. While there is widely accepted methodological knowledge in theory, in praxis sufficient application-oriented opportunities are missing. In this context two essential parameters are playing a decisive role: This is on the one hand data quality and-quantity. On the other hand the correct selection of suitable valuation methods. Besides the Intangible Assets that often exist in IT companies, inadequacies in the selection of valuation procedures appear. Out of the theoretically presented valuation procedures three procedures have been chosen and as part of an empirical study specific data of the IT company from Germany have been assessed over a period from 1.1.2005 to 31.12.2014. It became obvious that the Multiples either under-or overvalue significantly