IDEAS home Printed from https://ideas.repec.org/a/ahd/journl/v2y2021i1p32-38.html
   My bibliography  Save this article

Stock Valuation Methods

Author

Listed:
  • Delia Andreea FLOREA

    ("1 Decembrie 1918" University of Alba Iulia)

  • Diana Iulia OPRIȘ

    ("1 Decembrie 1918" University of Alba Iulia)

Abstract

The evaluation of an entity is used by financial market participants to establish the price which they want to pay for or to receive from the sale of a business. Nowadays, Romania has 350 listed companies and the number is increasing. The present article focuses on the market capitalization, stock evaluation methods, the phases of this evaluation, as well as its benefits and limitations. The dynamic methods of evaluation focus more on the company’s future rather than its current situation. An investor is more concerned with the future and the profitability of a business than with its past and current activity. Market capitalization, often referred to as market cap, is a simple, straightforward method to calculate a company’s size and value, and consequently, its potential growth rate and risk outlook.

Suggested Citation

  • Delia Andreea FLOREA & Diana Iulia OPRIȘ, 2021. "Stock Valuation Methods," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 2(1), pages 32-38, January.
    • Handle: RePEc:ahd:journl:v:2:y:2021:i:1:p:32-38
    DOI: 10.37945/cbr.2021.01.04
    as

    Download full text from publisher

    File URL: https://www.ceccarbusinessreview.ro/stock-valuation-methods-a98d/download-PDF/
    Download Restriction: no
    File URL: https://www.ceccarbusinessreview.ro/stock-valuation-methods-a98a/abstract/
    Download Restriction: no
    File URL: https://libkey.io/10.37945/cbr.2021.01.04?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    entity value; evaluation; listed companies; investor; market capitalization; stock market methods;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G19 - Financial Economics - - General Financial Markets - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ahd:journl:v:2:y:2021:i:1:p:32-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Radu CIOBANU (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.