Stock Evaluation Methods and their Applicability in Lithuania Ensuring Sustainable Capital Market Development
Volume 5, Issue 1 (2015), pp. 73–86
Pub. online: 30 September 2015
Type: Article
Open Access
Published
30 September 2015
30 September 2015
Abstract
The article discusses the situation in Lithuania`s stock market, stock valuation methods and their applicability in the capital market. Stock market data reveals that it is still under the development phase and that determines that a few stock valuation methods can be applied for this Baltic country. Statistical data shows that the most suitable valuation methods according to current market conditions are discounted cash flow to equity and equity economic value added methods. These two methods and their variables were analyzed deeply in order to ensure correct, objective and precise valuation and contribute to sustainable development of valuation practice in Lithuania.