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Importance of Fundamental Analysis in the Market Valuation of the Medical Sector. Evidence from a Developed Stock Market

Author

Listed:
  • Gabriel Druta

    (West University of Timișoara, Faculty of Economics and Business Administration, Romania)

  • Laura Raisa Milos

    (West University of Timișoara, Faculty of Economics and Business Administration, Romania)

Abstract

This study was conducted with the aim of showing the importance of fundamental analysis in valuing the companies in the medical sector, listed on Frankfurt Stock Exchange. The analysis period is 2008-2019 and the sample consists of 24 companies. As a result of the econometric modelling, it has emerged that fundamental analysis is a decisive one in the evolution of the market price of the companies listed on the German capital market, identifying indicators that have a positive and strong influence on the market value of companies, such as ROE and P/B ratio, and other indicators that exert a negative influence, such as indebtedness ratio and PER.

Suggested Citation

  • Gabriel Druta & Laura Raisa Milos, 2022. "Importance of Fundamental Analysis in the Market Valuation of the Medical Sector. Evidence from a Developed Stock Market," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 873-881, September.
    • Handle: RePEc:ovi:oviste:v:xxii:y:2022:i:1:p:873-881
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    fundamental analysis; efficient market hypothesis; fundamental indicators;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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