Value Assessment of Shares of Corporate Issuers by Applying the Methods of Fundamental Analysis in the Stock Exchange Market

Abstract

The paper describes the economic content of the category “fundamental analysis,” namely, its essence and implementation stages. It reflects the peculiarities of the securities valuation of corporate issuers and the main approaches and methods for determining the fair value of securities. The authors analyzed the infrastructure of the Ukrainian stock market, the poultry industry sector, and the financial condition of “Myronivsky Hliboproduct” PJSC. The authors, together with the expert of fundamental analysis, determined the fair value of the shares of “Myronivsky Hliboproduct” PJSC and described how to improve the valuation of corporate issuers’ securities. The paper provides recommendations for improving fundamental analysis. It is substantiated that the relevance of assessing the value of company securities by the methods of fundamental analysis is revealed through the development of the stock market, the establishment of new companies in public trading, and the introduction of the necessity for the application of the scientifically approved approach allowing to make strategic decisions regarding these companies. The authors proved that the use of fundamental analysis by investors is one of the primary methods successfully applied in the study of investment objects. It was confirmed that the fundamental analysis is popular due to its efficiency. Therefore, the research departments were established to conduct the analysis. It is proved that in the conditions of uncertainty (for example, in trade), market participants should carefully balance between optimization of performance and preparation for unpredictability. As a rule, traders tend to pay too much attention to the former and not enough to the latter. It is shown that the fundamental analysis is based on the assessment of issuer: its income, its position in the market, the value of assets and liabilities, and other indicators showing the company’s activity. The analysis is based on balances, reports, and other materials published by the company. It was also revealed that data on the state of the economy and affairs in the industry is studied during fundamental analysis. According to the research, the price of securities is too high or low compared to the real value of assets.