Acta Univ. Agric. Silvic. Mendelianae Brun. 2020, 68, 731-739

https://doi.org/10.11118/actaun202068040731
Published online 2020-08-30

Modeling the Equilibrium Price of the Companies Listed in the Prague Stock Exchange

Florin Aliu1, Adriana Knápková2, Hoang Khang Tran2, Bashkim Nurboja1

1University for Business and Technology, Lagjja Kalabria, 10000 Prishtine, Kosovo
2Department of Finance and Accounting, Faculty of Management and Economics, Tomas Bata University in Zlín, nám. T. G. Masaryka 5555, 760 01 Zlín, Czech Republic

Received April 27, 2020
Accepted July 18, 2020

Valuation provides proper evidence on the financial situation of the firms. Incorrect valuation delivers wrong signals for the market participants and stands on the concepts of markets with information asymmetry. The study measures the estimated intrinsic value of the selected companies listed in the Prague Stock Exchange. Moreover, the results of the work observe influencing factors that deviate stock prices of the companies listed in the Prague Stock Exchange (PSE) from their estimated intrinsic value. Valuation techniques and Monte Carlo Simulation were employed to detain the estimated intrinsic of the selected companies from the Prague Stock Exchange. The estimated results indicate that Czech listed companies deviate from the intrinsic value in the range of 58% while international companies in the range of 301%. However, the average deviation within market prices and intrinsic value of the companies listed in the PSE was 179%.

References

30 live references