Concepts of determination of equity cost of stock company

Oleksii Viktorovych Yaroshchuk


The lack of valuation of equity value of the company in domestic practice is recognized. It has been defined the basic methods to assess the value of an equity joint-stock company - the cumulative method, the risk premium method, the method of direct calculation of the cost of equity, evaluation method based on dividend growth, method for estimation of  capital asset, evaluation method based on the theory of arbitration pricing, Famy - French method. For each of these methods it has been outlined the conditions, payment, application and flaws that can cause deviations in the results of the assessment. It has been recognized that the most widely spread method in modern investment analysis is the method of assessing of the acquired capital assets due to the simple calculation of basic parameters.


method; evaluation; equity; risk-free premium; risk premium

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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