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AAK - Acta academica karviniensia

číslo 2017/2
USING OF P/E AND P/BV INDICATORS BY BUILDING A STOCK PORTFOLIO
[Využití indikátorů P/E a P/BV při sestavení akciového portfolia]
ISSN:
1212-415X (Print)
2533-7610 (Online)
Year [Rok]:
2017
Volume [Ročník]:
XVII
Issue [Číslo]:
2
Authors [Autoři]:
Martin Širůček, Martin Surovec
Abstract [Abstrakt]:
Presented paper is dealing with using selected fundamental indicators by building a stock portfolio. Analysis is focused on using P/E and P/BV indicators by building a stock portfolio from stocks listed on Prague Stock Exchange. The aim of this paper is answer on question, if stocks with lower P/E and/or P/BV bring investor higher return than stocks with higher values of these indicators or not. The usability of indicators was confirmed by our findings. Another conclusion of this paper is finding that stocks with lower P/E and/or P/BV exceeded benchmark represented by index PX-TR. Observed time period was from 2004 till 2014. Selected period was also divided on 5 year slip periods. Results show that stock with lower P/E or P/BV bring higher profit than stock with higher P/E or P/BV. These stocks also exceeded the benchmark.
Keywords [Klíčová slova]:
fundamental analysis, fundamental indicators, indicator ratio, price book value, price earning.
JEL classification [JEL klasifikace]:
G11, G12
Page range [Rozpětí stran]:
73 - 87
Full version [Plná verze]: