Application of the income approach in business valuation

The article demonstrates the application of the income approach to business valuation in practice. The purpose of the work is to identify problems in business valuation using the example of calculating the value of the company PJSC “Magnit”. The relevance of the work lies in the fact that at the moment the popularity of investing in shares is gaining momentum, and for the effectiveness of investments it is necessary to know the value of the company in order to determine the position of its shares in the market. The company is calculated using the capitalization method using the cumulative approach to determine the capitalization rate. The result of the work is that the value of PJSC “Magnit” turned out to be equal to 522.8 billion rubles, from which it was concluded that the company’s shares are undervalued on the market. Also, problems that arose in the course of business valuation were identified. Conclusions are drawn on the article.