Session
Management, Business and Economics
Description
Valuation is an important component of the bank appraisal since it determines the financial position of the common stocks. The work identifies the deviation of the intrinsic value from the shareholders book value, not the market price of the Kosovo commercial banks. The study use accounting items composed from the audited financial statements of the 10 selected banks operating in the Kosovo banking industry. The methodology stands on the discounted cash flow model adjusted for the bank specific characteristics. The absence of the Kosovo Stock Market generated certain limitations during the valuation process where the cost of equity and beta coefficients were obtained from Damodaran Database. Results of the work show huge deviation between book value of the banks and their estimated intrinsic value.
Keywords:
Estimated Value, Commercial Banks, Financial System.
Session Chair
Hasan Metin
Session Co-Chair
Leonita Braha Vokshi
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-19-2
First Page
105
Last Page
114
Location
Pristina, Kosovo
Start Date
26-10-2019 3:30 PM
End Date
26-10-2019 5:00 PM
DOI
10.33107/ubt-ic.2019.359
Recommended Citation
Aliu, Florin; Aliu, Fisnik; Nuhiu, Arton; and Dokoupilova, Lenka, "Modeling the Estimated Fundamental Value of the Kosovo Commercial Banks" (2019). UBT International Conference. 359.
https://knowledgecenter.ubt-uni.net/conference/2019/events/359
Included in
Modeling the Estimated Fundamental Value of the Kosovo Commercial Banks
Pristina, Kosovo
Valuation is an important component of the bank appraisal since it determines the financial position of the common stocks. The work identifies the deviation of the intrinsic value from the shareholders book value, not the market price of the Kosovo commercial banks. The study use accounting items composed from the audited financial statements of the 10 selected banks operating in the Kosovo banking industry. The methodology stands on the discounted cash flow model adjusted for the bank specific characteristics. The absence of the Kosovo Stock Market generated certain limitations during the valuation process where the cost of equity and beta coefficients were obtained from Damodaran Database. Results of the work show huge deviation between book value of the banks and their estimated intrinsic value.