The Recent Records on the US Stock Market – High Intrinsic Value or Just Another Bubble?

Dimiter Nenkov ()
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Dimiter Nenkov: University of National and World Economy, Sofia, Bulgaria

Ikonomiceski i Sotsialni Alternativi, 2014, issue 4, 5-16

Abstract: This paper is about the actual current prices of common stock on the US stock market, as compared with their intrinsic value. For this purpose, standardized prices, such as priceearnings ratios (PE), price-to-book ratios (PBV) and others are used, which provide the opportunity for comparison between companies, sectors and markets. In parallel with the review of actual ratios, theoretical/fundamental ratios are derived and analyzed, based on fundamentals. A historical survey is made of the actual price-earnings and price-to-book ratios on the US market, and their current levels are also discussed. The major factors determining the value of common stock are analyzed in terms of the eventual bubble on the stock market.

Keywords: stock market; High Intrinsic Value; bubble on the stock market (search for similar items in EconPapers)
JEL-codes: G11 G12 G15 (search for similar items in EconPapers)
Date: 2014
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