Importance of Fundamental Analysis in the Market Valuation of the Medical Sector. Evidence from a Developed Stock Market

Gabriel Druta () and Laura Raisa Milos ()
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Gabriel Druta: West University of Timișoara, Faculty of Economics and Business Administration, Romania
Laura Raisa Milos: West University of Timișoara, Faculty of Economics and Business Administration, Romania

Ovidius University Annals, Economic Sciences Series, 2022, vol. XXII, issue 1, 873-881

Abstract: This study was conducted with the aim of showing the importance of fundamental analysis in valuing the companies in the medical sector, listed on Frankfurt Stock Exchange. The analysis period is 2008-2019 and the sample consists of 24 companies. As a result of the econometric modelling, it has emerged that fundamental analysis is a decisive one in the evolution of the market price of the companies listed on the German capital market, identifying indicators that have a positive and strong influence on the market value of companies, such as ROE and P/B ratio, and other indicators that exert a negative influence, such as indebtedness ratio and PER.

Keywords: fundamental analysis; efficient market hypothesis; fundamental indicators (search for similar items in EconPapers)
JEL-codes: G11 G15 G32 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xxii:y:2022:i:1:p:873-881

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