Cash flow discounting of commercial bank.
The article considers practical aspects of reliability of bank value calculations (the use of discounting method). The main purpose of the article is to research practical estimation of market value of bank using cash flow discounting method. The subject of this research is the complex of theoretical and practical aspects of research problems of bank's value estimation. In Ukrainein assessing the value of banking business a traditional approach is used and above all the cash flow discounting method, with the application of which the potential of Ukrainian banks is underestimated. In domestic business there is a high level of risk that results in increasing the discount rate of cash flow and respectively reducing the cost of business. In order to improve the reliability of bank's value estimation it is necessary to develop practical aspects, and above all - the application of the method of discounting. The typical for all business entities conceptual characteristics of elements of market value has been described. The discounting cash flow model, which is the main in the income approach of value estimation, where the cash flows are determined by forecasting the future earnings and bringing them to the present time, has been reviewed in details. According to this method, the cost of business is based on its potential profitability. The expediency of modified cash flow formula for shareholders' equity that brought it to domestic conditions has been substantiated. The formula of cash flow for shareholders' equity modified during the research will allow domestic banks to perform appropriate calculations more authentically.