Approaches to common stock valuation

Tarlan Aliyev, BA

Master's thesis

Abstract:

Forecasting and evaluating the expected return on ordinary shares is an urgent problem in the current conditions of high volatility in the global financial market. Depending on the calculation methods used, software, historical price data and some other initial conditions, the future expected return on one company's shares may change from extremely positive to extremely conservative. In this regard, there is an objective need to assess the expected return on shares using various approaches and then compare the obtained indicators with the actual return on the security. In the Master Diploma Thesis, the author has studied and applied in practice the key basic approaches in the field of calculating the predicted expected return on ordinary shares. The work explores the stock market in the oil and gas sector, as well as the factors influencing the value of shares in the sector. For a practical part the production and financial activities of ExxonMobil Corporation was assessed, within the framework of technical analysis, the current methods of evaluating the common stock were studied.

Keywords

Common stocks, Ordinary shares, Valuation, Fair value, Fundamental analysis, Technical analysis, Cost management, Dividend policy, ExxonMobil Corporation

Language used: English

Date on which the thesis was submitted / produced: 30. 11. 2021

Thesis defence

• Supervisor: Ing. Pavel Srbek, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management