MARKET CAPITALISATION OF COMPANIES THROUGH THE PRISM OF THEIR BUSINESS MODELS

Abstract

The market capitalisation of companies has always been the subject of close scrutiny by both owners and potential investors, who are often guided by the importance of the future value of the company. Often, there are no objective reasons behind high market capitalisations that could lead to an increase in the value of companies. Every cost has a value, and value is something that can bring benefits. The owner of a company therefore aims to use its assets productively and profitably in order to increase the capital raised and diversify the range of value-added products. Value cannot be created spontaneously. In fact, behind every value there are people and resources that, in symbiosis, can create a good that benefits others through synergy. The article defines the market capitalisation of agribusiness companies and analyses capitalisation multiples.  The business models of the companies and their ability to generate cash flow from operations are analysed. The value of a company's activities is determined by the existence of a business model that can generate positive cash flow. The business models of companies can partially solve the problem of determining their fair value.