Achieving financial sustainability through financial assets valued at less or more than their true value in the financial market - an applied study in international financial markets
Keywords:
Fair value, market value, return, risk, valuation of the name more than it should be, valuation of the shares less than it should be.Abstract
The research sought to highlight the role played by tools and models for evaluating ordinary shares in making financing and investment decisions through ordinary shares These decisions help achieve corporate financial sustainability, Or less than their real values in the money market? In order to reach this answer, it was possible to evaluate these shares through the market and real values of the shares and determine the extents of the negative and positive differences between them, by taking the shares of the international companies covered in the research during the period (2013-2022) and by ten companies operating in different fields and sectors, and it was possible to analyze the variables Searching through the portfolio method and adopting advanced financial models, extracting their real values and standing on the returns and risks of ordinary shares within the framework of the investment portfolio that includes the shares of these companies. Its real value was higher than the market value, and this means that the stock is valued at less than the (real) fair value, i.e. valued at less than it should be. As for the shares of the remaining international companies, they have been valued higher than they should be. In light of this, a set of appropriate recommendations could be drawn up.