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...

Full description

Saved in:
Bibliographic Details
Main Authors: Zimonjić Stefan, Gavrilović Milan, Roganović Miloš
Format: Article
Language:English
Published: Visoka poslovna škola strukovnih studija Prof. dr Radomir Bojković, Kruševac 2018-01-01
Series:Trendovi u Poslovanju
Subjects:
Online Access:https://scindeks-clanci.ceon.rs/data/pdf/2334-816X/2018/2334-816X1801039Z.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1823859932691169280
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