The Use of Indicators in Modified Historical Model to Estimate the Intrinsic Value of a Stock
Gottwald Radim
Klíčová slova
historical model, intrinsic value of a stock, stock valuation
Abstrakt:
The article mentions several methods of a fundamental analysis used to value stocks. It primarily
focuses on the historical model. This model enables undervalued, correctly valued and
overvalued stocks to be identified. The model is further modified in the article, using selected
accounting indicators. The modified model versions are applied to selected stocks in the SPAD
segment, Prague Stock Exchange, within the 2005-2010 period. Empirical analysis is applied
to a comparison of accuracy of the accounting indicator value estimates and accuracy of stock
intrinsic value estimates, both separately for each stock and accounting indicator. The comparisons
of accuracy of the accounting indicator value estimates and the accuracy of the stock
intrinsic value estimates are also done based on the length of applied time period. With respect
to the obvious fierce competition between stock issuers within the financial markets, the
model enables potential investors, who are to select from an extensive offer of stocks, to make
better informed investment decisions.
Celý článek ke stažení:
The Use of Indicators in Modified Historical Model to Estimate the Intrinsic Value of a Stock [PDF soubor] [Velikost souboru: 844.13 KB]
10.7441/joc.2012.02.07
Gottwald, R.(2012). The Use of Indicators in Modified Historical
Model to Estimate the Intrinsic Value of a Stock. Journal of Competitiveness, 4 (2), 97-110. https://doi.org/10.7441/joc.2012.02.07
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