Methods for share values assessment and shareholder value creation
This paper analyzes the methods of determining the value of the shares, which are among the most used financial instruments. The company's shares are transferable in the capital market, according to the regulations of a particular state, where the price is formed according to the principles of...
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Format: | Article |
Language: | English |
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Visoka poslovna škola strukovnih studija Prof. dr Radomir Bojković, Kruševac
2018-01-01
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Series: | Trendovi u Poslovanju |
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Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/2334-816X/2018/2334-816X1801039Z.pdf |
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author | Zimonjić Stefan Gavrilović Milan Roganović Miloš |
author_facet | Zimonjić Stefan Gavrilović Milan Roganović Miloš |
author_sort | Zimonjić Stefan |
collection | DOAJ |
description | This paper analyzes the methods of determining the value of the shares, which are among the most used financial instruments. The company's shares are transferable in the capital market, according to the regulations of a particular state, where the price is formed according to the principles of supply and demand. The interest of the investor will depend on a number of parameters-the length of the stock owning, its affinity to the shares of renowned companies that give stable dividends, the tendency to risk with new, growing companies, and the affinities for the shares of companies that are planning serious investment ventures, etc. Despite the fact that there are certain visible value parameters, such as bookkeeping or market price, they are often insufficient to properly evaluate the value and possible profit for investors who opt for their purchase. Therefore, models for evaluating higher or lesser complexity of the discounting dividends, discounting cash flows, as well as series of relative valuation models have been developed. These valuations are important during the life of a joint stock company, during the first emission, subsequent recapitalization, as well as when making investment decisions on the secondary stock market. |
format | Article |
id | doaj-art-b2619a3b3e8c48978febc2f5878838cd |
institution | Kabale University |
issn | 2334-816X 2334-8356 |
language | English |
publishDate | 2018-01-01 |
publisher | Visoka poslovna škola strukovnih studija Prof. dr Radomir Bojković, Kruševac |
record_format | Article |
series | Trendovi u Poslovanju |
spelling | doaj-art-b2619a3b3e8c48978febc2f5878838cd2025-02-10T19:38:24ZengVisoka poslovna škola strukovnih studija Prof. dr Radomir Bojković, KruševacTrendovi u Poslovanju2334-816X2334-83562018-01-016139492334-816X1801039ZMethods for share values assessment and shareholder value creationZimonjić Stefan0Gavrilović Milan1Roganović Miloš2Visoka škola za poslovnu ekonomiju i preduzetništvo, BeogradVisoka škola za poslovnu ekonomiju i preduzetništvo, BeogradVisoka škola za poslovnu ekonomiju i preduzetništvo, BeogradThis paper analyzes the methods of determining the value of the shares, which are among the most used financial instruments. The company's shares are transferable in the capital market, according to the regulations of a particular state, where the price is formed according to the principles of supply and demand. The interest of the investor will depend on a number of parameters-the length of the stock owning, its affinity to the shares of renowned companies that give stable dividends, the tendency to risk with new, growing companies, and the affinities for the shares of companies that are planning serious investment ventures, etc. Despite the fact that there are certain visible value parameters, such as bookkeeping or market price, they are often insufficient to properly evaluate the value and possible profit for investors who opt for their purchase. Therefore, models for evaluating higher or lesser complexity of the discounting dividends, discounting cash flows, as well as series of relative valuation models have been developed. These valuations are important during the life of a joint stock company, during the first emission, subsequent recapitalization, as well as when making investment decisions on the secondary stock market.https://scindeks-clanci.ceon.rs/data/pdf/2334-816X/2018/2334-816X1801039Z.pdfstocksthe stock pricediscounting cash flowsrelative valuation models |
spellingShingle | Zimonjić Stefan Gavrilović Milan Roganović Miloš Methods for share values assessment and shareholder value creation Trendovi u Poslovanju stocks the stock price discounting cash flows relative valuation models |
title | Methods for share values assessment and shareholder value creation |
title_full | Methods for share values assessment and shareholder value creation |
title_fullStr | Methods for share values assessment and shareholder value creation |
title_full_unstemmed | Methods for share values assessment and shareholder value creation |
title_short | Methods for share values assessment and shareholder value creation |
title_sort | methods for share values assessment and shareholder value creation |
topic | stocks the stock price discounting cash flows relative valuation models |
url | https://scindeks-clanci.ceon.rs/data/pdf/2334-816X/2018/2334-816X1801039Z.pdf |
work_keys_str_mv | AT zimonjicstefan methodsforsharevaluesassessmentandshareholdervaluecreation AT gavrilovicmilan methodsforsharevaluesassessmentandshareholdervaluecreation AT roganovicmilos methodsforsharevaluesassessmentandshareholdervaluecreation |