Results accuracy analysis of the market value assessment of non-public companies equity with a profitable approach

Within the framework of this article, the accuracy of the application of the income approach to assessing the market value of the equity capital of non-public companies is studied. For this, a sample of 45 public companies was collected, a number of indicators were calculated, and only the data that could be available for private firms were used. Market data were taken as the true values of the cost of equity capital. Ultimately, the applied model showed a rather large standard deviation of errors, but a high level of correlation and determination coefficients. The residuals of the model were distributed normally, the hypothesis that their mathematical expectation was equal to zero was not denied.