Valuation Method


The methods we prefer for valuation of the stocks forming the subject of the publication and therefore Expected Total Return (ETR) in 12 months, are those most commonly used in market practice, i.e. multiples comparison (comparison with market ratios – e.g. P/E, EV/EBITDA, and others – expressed by stocks belonging to similar sectors) or classic financial methods such as the discounting of cash flows (DCF model) or others based on similar concepts.

For financial stocks we also use valuation methods based on comparison of ROE (ROEV - return on embedded value - for insurance companies), cost of capital, and P/BV (P/EV – price/embedded value – for insurance companies).


Fixed Income