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Valuation of Slovene Publicly Traded Companies with a Valuation Model Based on Expected Earnings and Growth Opportunities

Author

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  • Igor Stubelj

    (University of Primorska, Slovenia)

Abstract

The article sheds light on valuating Slovene publicly traded companies. The research aim is to solve the problems about company valuation in an emerging market, such as the Slovene market certainly is. The critical point is how to evaluate the variables to put in the valuation model. The chosen methodology deals with these problems, and minimizes the analyst’s subjective judgment and the bias the analyst puts into the valuation. Twenty Slovene publicly traded companies are valuated with a valuation model based on expected earnings and growth opportunities. The research provides the assessment and the usefulness of valuation with the model and the conclusions from the valuation results.

Suggested Citation

  • Igor Stubelj, 2010. "Valuation of Slovene Publicly Traded Companies with a Valuation Model Based on Expected Earnings and Growth Opportunities," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 8(1), pages 023-047.
  • Handle: RePEc:mgt:youmgt:v:8:y:2010:i:1:p:023-047
    as

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    File URL: http://www.fm-kp.si/zalozba/ISSN/1581-6311/8_023-047.pdf
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    References listed on IDEAS

    as
    1. Fama, Eugene F & French, Kenneth R, 2000. "Forecasting Profitability and Earnings," The Journal of Business, University of Chicago Press, vol. 73(2), pages 161-175, April.
    2. Matjaz Novak, 2003. "Analysis of the Nature of Economic Growth of Slovenian Economy," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 1(2), pages 153-167.
    3. Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411-411.
    4. Jerman Mateja & Manzin Massimo, 2008. "Accounting Treatment of Goodwill in IFRS and US GAAP," Organizacija, Sciendo, vol. 41(6), pages 218-225, November.
    5. James A. Ohlson, 2003. "Positive (Zero) NPV Projects and the Behavior of Residual Earnings," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(1-2), pages 7-16.
    6. repec:bla:joares:v:38:y:2000:i:1:p:45-70 is not listed on IDEAS
    7. Mishra, Dev R. & O'Brien, Thomas J., 2005. "Risk and ex ante cost of equity estimates of emerging market firms," Emerging Markets Review, Elsevier, vol. 6(2), pages 107-120, June.
    8. Black, Fischer, 1972. "Capital Market Equilibrium with Restricted Borrowing," The Journal of Business, University of Chicago Press, vol. 45(3), pages 444-455, July.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Primož Dolenc & Suzana Laporšek, 2012. "Taxing wages and sustainable labour market performance: empirical evidence from OECD and EU countries," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 4(3), pages 234-253.
    2. Primoz Dolenc & Suzana Laporsek, 2012. "Labour Taxation and Its Impact on Employment Growth," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 10(3 (Fall)), pages 301-318.
    3. Primož Dolenc & Suzana Laporšek, 2013. "Flexicurity Policies and their Association with Productivity in the European Union," Prague Economic Papers, University of Economics, Prague, vol. 2013(2), pages 224-239.

    More about this item

    Keywords

    company valuation; earnings; investments; capital; cost of equity capital;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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