PRIMA: Practices and Research in Marketing

1. Margi Kamlesh Shah – Gujarat Technological University, Gujarat, India.

2. Mahammadrafique U. Meman – Gujarat Technological University, Gujarat, India.

Received
12-Feb-2024
Accepted
-
Published
12-Feb-2024
Abstract
Investors invest money in different financial instruments to get a return on investment. Every investor is deliberate to know the proper time to enter the market which would help the investor to get the maximum return from the invested amount. Selecting the right stock for the investment is based on the interpretation and analysis applied for value of the stock. The fundamental value of the stock is useful for the investor to analyse the intrinsic value of the stock. The intrinsic value of stock determines the investors whether stock is under-valued or overvalued stock. There is different model for fundamental value analysis model like economic value added, market value added and intrinsic value of the stock. Economic value-added models are used for the financial performance measurement tools which analyse how much wealth the company had created to the investors after deducting the net operating profit and cost of capital. Market value added is a measure of wealth a company has created for its investors. It is a cumulative measure of corporate performance that looks at how much a company’s stock has added to (or taken out of) investors. The intrinsic value model is the worth of the shares as measured by their return-generating potential. The research aims to analyse the intrinsic value of the stock based on the residual income model, one stage model and market value-added model.
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Open Access