Organisation and Fund Aspects of Analysis of Processes of Capitalisation of Industrial Enterprises of 5kraine

Lototsky Mykola Ya. ()
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Lototsky Mykola Ya.: The Security Service of Ukraine in the Kiev region

Business Inform, 2013, issue 10, 179_186

Abstract: The goal of the article is to conduct analysis of market capitalisation of individual domestic industrial enterprises. Using such indicators as Eamings Per Share (EPS), relation of market capitalisation of the company to its net earnings (price/earnings, P/E), relation of market capitalisation of the company to its revenues (price/sales, P/S), Market-to-Book Ratio and Tobin's Q-ratio, the article calculates the weighted average cost of capital by sectors of industrial production. In the result of the study it establishes that market capitalisation of domestic industrial enterprises mainly depends on the market cost of shares - assessment of the cost of business by the market. It proves that formation of the market capitalisation is determined today, first of all, by external factors: market situation, demand and supply of shares in the stock market and forecasted expectations of investors with respect to increase of effectiveness of enterprises' activity in future. Solution of the problem of deficit of financial resources for realisation of large-scale investment project by domestic industrial enterprises through making financial resources cheaper and optimising their structure requires further study.

Keywords: market capitalisation; profit; capital structure; capital sources; economic added value (search for similar items in EconPapers)
Date: 2013
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