 The Investment on Capital Market: From Target Price Valuation Models to Investor Final DecisionChapter Chapter 16 in Emerging Issues in the Global Economy, 2018, pp 179-187 from Springer Abstract: Abstract The investments on capital market are more attractive nowadays considering the short-term potential earnings that this particular market can offer but also the opportunities generated by the new entry companies. The aim of the paper is to present different valuation models of share in order to identify/calculate a target price, on one hand, and to emphasize the impact of both internal and external information on price per share, on the other hand. The target price is an important instrument that drives, alongside with industry, financial, and risk analysis, the investment decision to buy, to hold, and to sell. The key issues in determining target price are equity analysis, cash flow forecasts, dividend forecast, peer valuation, and so on. But even if a fair/true target price of a given share according to valuation models was established, the external information (from the macroeconomic environment or related to the government policies) could have a huge impact on price per share and on investor decision to buy, to hold, or to sell. Keywords: Share; Target price; Valuation models; Investment decision (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-71876-7_16 Ordering information: This item can be ordered from DOI: 10.1007/978-3-319-71876-7_16 Access Statistics for this chapter More chapters in Springer Proceedings in Business and Economics from Springer |
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