scholarly journals “Intrinsic Value vs. Market Value: An Empirical Mean-Reversion-Based Study”

2012 ◽  
Vol 2 (2) ◽  
pp. 257
Author(s):  
Hassan El Ibrami ◽  
Saidatou Dicko
Keyword(s):  
Structural Model ◽  
Intrinsic Value ◽  
Market Value ◽  
Mean Reversion ◽  
Financial Statements ◽  
Financial Assets ◽  
Accurate Assessment ◽  
A Company

The market very often overestimates financial assets because of speculation. This makes it difficult to determine the proper value of a company. We believe that intrinsic value should be used to make an accurate assessment. Hence, financial statements data should be used to determine the value of a company. The main purpose of this paper is to measure the performance of a mean reversion structural model in pricing shares. The model was developed by El Ibrami and Naciri (2012). The market is used as a benchmark to determine the performance of the model analyzed. The results of the study show that the market overestimated mean reversion companies by about 10% and remain consistent throughout the industries. Keywords: Mean reversion, Equity, EBIT, Volatility.

scholarly journals KREATIVNO FINANSIJSKO IZVEŠTAVANJE O NOVČANIM TOKOVIMA

2017 ◽  
pp. 163
Author(s):  
Aleksandra Arsenijević ◽  
Tadija Đukić
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Market Value ◽  
Financial Statements ◽  
Cash Flows ◽  
Financial Position ◽  
A Company ◽  
Operating Activities

Financial statements should realistically show financial position, performance, and cash flows of a company. Creative financial reporting represents a deliberate manipulation of information in financial statements in order to create misperceptions on company operations. Creative financial statements are primarily intended for investors, in order to encourage them to purchase company shares and thus increase its market value. Creativity in compiling cash flow statements lies in presentation of operating activities as investing and financing activities, and vice versa.

scholarly journals Analisis Fundamental Saham Terhadap Pertumbuhan Perusahaan STUDI KASUS PADA PT. HOLCIM INDONESIA, TBK.

2013 ◽  
Vol 1 (3) ◽  
pp. 205-212
Author(s):  
Annaria Magdalena Marpaung
Keyword(s):  
Capital Structure ◽  
Intrinsic Value ◽  
Market Price ◽  
Market Value ◽  
Financial Statements ◽  
Fundamental Analysis ◽  
Economic Data ◽  
Public Companies ◽  
The Impact ◽  
Positive Effect

Fundamental analysis is a method of analysis using the fundamental strength of a country. In general, the fundamental strength of a country is shown by the country’s economic data. Fundamental analysis states that every stock has an intrinsic value. This analysis attempts to calculate the intrinsic value of a stock by using the fundamental data of the “ Company’s Financial Statements “, such as earning devidends, sales, capital structure, risk etc. This analysis will compare the intrinsic value with the market value to determine whether the market price of shares has reflected its intrinsic value or has not. The purpose of this study is to find out the company’s fundamental analysis with the liquidity ratio, the company’s growth, and the impact of the analysis on the company’s growth. The result of the research indicates that the two public companies analyzed for six years in terms of cash and cash equivalents, inventories, current assets and current liabilities is that PT. Holcim Indonesia, Tbk was stable. Concerning profit growth, PT. Holcim Indonesia, Tbk yielded profit. The analysis of those factors shows that it has positive effect for PT. Holcim Indonesia, Tbk which causes many investors will invest their funds. Keywords : Fundamental analysis; liquidity ratio; company’s growth

Analisis Kebijakan Dividen Terhadap Nilai Intrinsik dan Nilai Pasar Perusahaan

2013 ◽  
Vol 1 (2) ◽  
pp. 113-124
Author(s):  
Nusa Muktiadji ◽  
Felicia Felicia
Keyword(s):  
Significant Influence ◽  
Stock Price ◽  
Dividend Policy ◽  
Intrinsic Value ◽  
Market Value ◽  
Net Income ◽  
Independent Variable ◽  
The Relationship ◽  
A Company

Dividend policy is basically a company’s decision in determining how much net income wil be distributed to shareholders as dividend and how much will be retained. Dividend policy is able to influence intrinsic and  market value of a company. In this study, the proxy of dividend policy is Dividend Pay-out (DPO) as independent variable and intrinsic value as dependent variable with indicator that is multiplication result of Earning Multiplier (EM) and Company Market Value obtained from stock price data of LQ45 at closing price. The purpose of this study is to identify the relationship between variables, the influence of independent variable to dependent variable, and finally to measure how significant the influence of variable X to variable Y will be, dividend policy to intrinsic and market value of the company. This case study was conducted at PT Aneka Tambang Tbk. and PT Timah Tbk., both are mining company. The results of this study are: 1) Dividend policy proxied by DPO has significant influence and relationship to the intrinsic value of PT Aneka tambang Tbk. But, at PT Timah Tbk., dividend policy to intrinsic value is not significant with alpha as high as 193.064, it’s due to the dividend policy does not influence the intrinsic value, but the intrinsic value is more influenced by EPS. 2) Dividend policy proxied by DPO has connection and fairly significant influence with the company’s market value at PT Aneka Tambang Tbk. But, at PT Tima Tbk., dividend policy to the company’s market value is not significant with alpha as high as 54.859, it’s due to the dividend policy does not influence the company’s market value, but the intrinsic value is influenced dominantly by the company’s market value. The result of the research shows that the dividend policy at PT Aneka Tambang Tbk has  impact on intrinsic and market value better than the dividend policy has impact on intrinsic and market value at PT Timah Tbk.   Keywords: dividend policy; intrinsic value; market value

scholarly journals Does crisis affect credit risk in developing countries?

2019 ◽  
Vol 2 (1) ◽  
pp. 47-59
Author(s):  
MARC KOUZEZ ◽  
Danielle Lecointre-Erickson
Keyword(s):  
Credit Risk ◽  
Structural Model ◽  
Market Value ◽  
Z Score ◽  
International Crisis ◽  
Linear Discriminant ◽  
Discriminant Model ◽  
The Core ◽  
A Company

At the core of the crisis marked by its magnitude, credit risk turned to become a powerful catalyst. The objective of this paper is mainly to follow up the evolution of the credit risk at the Jordanian market during the recent economic and financial international crisis. Based on the linear discriminant model Z-Score and KMV structural model, we recognize the increase in the credit risk during the crisis period. On the whole, the confrontation between models highlights the robust correlation between the accounting results of a company and its market value.

scholarly journals Recognition of comprehensive income in Slovak companies

2014 ◽  
pp. 8-14 ◽  
Author(s):  
Marta Lapková ◽  
Jana Stašová
Keyword(s):  
Financial Institutions ◽  
Financial Statements ◽  
National Standards ◽  
Company Performance ◽  
Financial Assets ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses ◽  
A Company

Financial statements are the key resource for assessing a company´s performance. The form and content of financial statements reflect a country`s accounting regulations. If financial statements can be drawn up under a range of different principles and procedures, this may cause problems for external users. The purpose of this paper is to evaluate comprehensive income recognition in the financial statements of Slovak companies that are prepared according to IFRS, with an emphasis on items of other comprehensive income. Our research showed that Slovak companies preparing financial statements in accordance with IFRS use a range of options allowed by national standards. Therefore the form of their comprehensive income recognition varies. Other comprehensive income was recognized in the statement of profit or loss and other comprehensive income, in the majority of researched entities. Our research shows that reporting of other comprehensive income divided into reclassified and not reclassified items is relevant for the assessment of company performance, because of their impact on reported profit or loss, and on selected indicators of profitability, particularly for our sample of financial institutions. This is due to the nature of their activity, for in  most cases the gains and losses on financial assets available for sale are recognized in other comprehensive income, which will be reclassified to profit or loss in subsequent periods.

scholarly journals Financial statements – basis for assessing the financial performance from the investors’ perspective, by means of prospectively oriented indicators

2009 ◽  
Author(s):  
Aristita Rotila
Keyword(s):  
Financial Performance ◽  
Value Added ◽  
Market Value ◽  
Financial Statements ◽  
General Purpose ◽  
Market Values ◽  
Market Value Added ◽  
A Company

The items of information within the financial statements are presented with a general purpose, in order to satisfy the needs of all categories of users but, in this paper, we decided that,<br />starting from the financial statements, we could approach the issue of assessing the financial performance only from the single perspective of the investors, also taking into account the market value of the company. The market value of a company represents the sum of the market values of the two components in the capital’s structure: shareholders’ equity and liabilities. It is considered that it is only in the case of shareholders’ equity that the market value differs from the accounting value, but this is not the case with liabilities, so the “market value added” will be researched only by taking account of shareholders’ equity.

ANALISIS FUNDAMENTAL SAHAM TERHADAP PERTUMBUHAN PERUSAHAAN (STUDI KASUS PADA PT. BLUE BIRD, TBK.)

2018 ◽  
Vol 3 (2) ◽  
pp. 39-45
Author(s):  
Sunaryono Sunaryono
Keyword(s):  
Capital Structure ◽  
Intrinsic Value ◽  
Market Price ◽  
Market Value ◽  
Financial Statements ◽  
Fundamental Analysis ◽  
Economic Data ◽  
Public Companies ◽  
The Impact ◽  
Positive Effect

The method of analysis using the fundamental strength of a country is called by fundamental analysis. In general, the fundamental strength of a country is shown by the country’s economic data. Fundamental analysis states that every stock has an intrinsic value. This analysis attempts to calculate the intrinsic value of a stock by using the fundamental data of the “ Company’s Financial Statements “, such as capital structure,earning devidends, sales, expenditure etc. This analysis will compare the intrinsic value with the market value to determine whether the market price of shares has reflected its intrinsic value or has not. The purpose of this study is to find out the company’s fundamental analysis with the liquidity ratio, the company’s growth, and the impact of the analysis on the company’s growth. The result of the research indicates that the two public companies analyzed for five years in terms of cash and cash equivalents, inventories, current assets and current liabilities is that PT. Blue Bird, Tbk was stable. Concerning profit growth, PT. Blue Bird, Tbk yielded profit. The analysis of those factors shows that it has positive effect for PT. Blue Bird, Tbk which causes many investors will invest their funds. Keywords : ; ; company’s growth  

scholarly journals PENGARUH EARNING POWER DAN FIRM SIZE TERHADAP EARNING MANAGEMENT PADA PT. ELNUSA, TBK PERIODE 2008-2017

2021 ◽  
Vol 3 (2) ◽  
pp. 135-152
Author(s):  
Gina Sakinah ◽  
Taufiq Ridwan Murtadho
Keyword(s):  
Earnings Management ◽  
Firm Size ◽  
Significant Influence ◽  
Secondary Data ◽  
Market Value ◽  
Financial Statements ◽  
Earning Management ◽  
Earning Power ◽  
A Company ◽  
Source Of Information

Financial statements become the main source of information for all parties because it provides an overview of the state of the company's performance for a certain period. Company profit information will provide an overview of the company's ability to manage the company effectively and efficiently. Earning management is an action taken by the manager in the presentation of financial statements. Earning power the company's ability to generate profit in each period. Firm size is a scale that classifies the size of a company by assessing the total level of assets, stock market value, log size, and others. This research uses descriptive methods and quantitative approaches using secondary data supported by literature and documentation studies. The results showed partial earning power has a significant influence on earnings management. But firm size has no significant effect on earnings management. Simultaneously, both free variables can contribute and can significantly affect earnings management with a contribution of 58.5%. Keywords: Earning Power, Firm Size, Earnings Management

ANALISIS PREDIKSI POTENSI KEBANGKRUTAN PADA PT BANK MUAMALAT INDONESIA Tbk PERIODE 2012-2016 DENGAN MENGGUNAKAN METODE ALTMAN MODIFIKASI

2017 ◽  
Vol 5 (2) ◽  
pp. 287-324
Author(s):  
Dewi Laela Hilyatin
Keyword(s):  
Financial Performance ◽  
Financial Structure ◽  
Financial Statements ◽  
Financial Ratios ◽  
Z Score ◽  
Altman Analysis ◽  
Gray Area ◽  
Modification Method ◽  
A Company

Abstract Bankruptcy is a very essential issue that every company should be aware of. Bankruptcy of a company can be minimized by advanced prediction; such as analyzing the financial statements. This study discusses the financial performance of PT Bank Muamalat Indonesia Tbk, which indicates that there is a degression in some number of financial ratios, the closing of offices and firing of employees in 2012-2016, causing he fact that BMI must pay attention and improve its financial performance and anticipate the existence of a bankruptcy in the company. Based on Altman analysis modification for financial performance of PT Bank Muamalat Indonesia Tbk in 2012-2016, it found Z-Score value of 0,825, 0,659, 1,243, 0,982 and 0,892. Based on Z-Score criteria, PT Bank Muamalat Indonesia Tbk is predicted to experience problems in management and financial structure and also in potentially bankruptcy due to Z-Score value <1,1 while the highest Z-Score value is in 2014, which shows the value of Z-Score>1,1 and <2,6, which means the company is in the gray area, meaning the company’s category is not said to be bankrupt and also not healthy. Keywords: Bankruptcy, Altman Modification Method

PENGARUH CAR, LDR DAN ROA TERHADAP LABA PERUSAHAAN PERBANKAN TERDAFTAR DI BURSA EFEK INDONESIA

2018 ◽  
Vol 23 (1) ◽  
pp. 72-85
Author(s):  
Lasminisih ◽  
Emmy Indrayani
Keyword(s):  
Decision Making ◽  
Multiple Regression ◽  
Stock Exchange ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Financial Statement ◽  
Return On Assets ◽  
Capital Adequacy Ratio ◽  
A Company ◽  
Future Plans

Company financial statement can be used to monitor the performance of a company. Financial statements are also used as a means for decision making so that the company can anticipate future plans. The purpose of this study was to find out the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Return on Assets (ROA) on profit changes percentage of Banking Companies. The number of sample companies used in this study was 27 Banks listed in the Indonesia Stock Exchange with observation periods from 2007 to 2008. The method used in this study was multiple regression. The results of this study have indicated that CAR, LDR, and ROA gave significant effects on changes in Banks profit so that Banking Companies performances can be measured. Keywords: CAR, LDR, ROA, Profit

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