Traditional Models

Traditional models of companies evaluation are based in accounting data and in restricted criteria in the classification of intangible assets, as shown in the final part of chapter 3 of this work, cannot, respond to exhaustive evaluation of components to consider in capital knowledge.

The observation of traditional models of companies evaluation was necessary to comprehend the extent to witch our capital knowledge measures goals could serve. We conclude that they cannot respond for seating in restricted criteria of identification of the intangible assets designated by goodwill. Supposedly, its practical application is always accompanied with complementary analysis selected in function of the appraiser interests and who orders the evaluation.

Traditional models of companies evaluation measure the Goodwill from accounting data from the past or planned for the future. The theory holds that the projection should rely on the analysis of the company situation in its environment, particular the macroeconomics conditioners, of concurrency, of capitals market, of financial data and from the company operating situation. The practice is more conservator, leads normally to compromising solutions and approximated estimates.

The Goodwill concept used by all of this traditional models of companies’ evaluation, have a content closed to the content of Capital Knowledge that we have been developing, but is more restricted. Both pretend to value intangibles, but differ due to origin scientific area and to methodologies and measures assumptions, used by each group of theoreticians that used the concepts. The term goodwill is used by theoretical and financial accountings while the capital knowledge term was recently created by theoreticians closed to information technologies.

The theoreticians of information technologies address the problem in a perspective targeted to the search of origins and contents for the concept, based in the performance of assets of knowledge derived of the common path of knowledge formation (facts → data → information → knowledge). The theoreticians of the accounting and financial vision have a more practical and rigid perspective targeted to the global evaluation of companies, during mergers or acquisitions.

The models of Capital Knowledge try to integrate other data sources besides accountings and financials. They depart, usually, from the awareness of the existence of knowledge in people, in relationship, in clients, in companies processes, in the capacity for renewal and developing and in the environment where it acts, such as the model of Leif EDVINSSON.

  • Earnings Value Model
  • Discounted Cash-Flow (DCF) Model
  • Dividend Discount Model by Gordon Shapiro
  • Classical Model
  • Charmont Model
  • Union des Experts Comptables Européenes (UEC) Model, simple or direct
  • Complete UEC Model
  • Practical or Indirect Model
  • Direct, Anglo-Saxon or Goodwill Rent Model
  • Net Asset Value (NAV) Model
  • Stuttgart Model
  • Barnay & Calba Model
  • Stock Market Value Model