IDEAS home Printed from https://ideas.repec.org/a/aan/journl/v1y2019i1p33-52.html
   My bibliography  Save this article

Bulgarian SOFIX Levels in 2017 According to The “Price-to-Sales” and “Enterprise Value-to-Sales” Ratios

Author

Listed:
  • Dimiter Nenkov

    (Department of Finance, University of National and World Economy, Sofia, Bulgaria)

Abstract

This paper is focused on the “price-to-sales ratio” (P/S) and the “enterprise value-to-sales ratio” (EV/S), which can be used in relative valuation, in the analysis of companies’ performance, as well as in the analysis of different sectors and of the market as a whole. The advantages and drawbacks of the market ratios are analyzed in brief. The derivation of the fundamental “price-to-sales” (P/S) and the “enterprise value-to-sales”(EV/S) ratios is discussed in detail. The two fundamental P/S and EV/S ratios for the Bulgarian stock market are calculated and compared with the corresponding actual P/S and EV/S. The results of the study indicate that the current levels of the actual P/S and EV/S are much higher than the levels suggested by fundamentals, which is an indicator for an overpriced Bulgarian stock market in 2017.

Suggested Citation

  • Dimiter Nenkov, 2019. "Bulgarian SOFIX Levels in 2017 According to The “Price-to-Sales” and “Enterprise Value-to-Sales” Ratios," Finance, Accounting and Business Analysis, University of National and World Economy, Institute for Economics and Politics, vol. 1(1), pages 33-52, February.
  • Handle: RePEc:aan:journl:v:1:y:2019:i:1:p:33-52
    as

    Download full text from publisher

    File URL: http://faba.bg/index.php/faba/article/view/4/3
    Download Restriction: no
    ---><---

    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:aan:journl:v:1:y:2019:i:1:p:33-52. 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: Yanko Hristozov (email available below). General contact details of provider: https://edirc.repec.org/data/ienwebg.html .

    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.