According to Tejarat News, Alireza Tajbar, a capital market expert, in response to the question of what value means and what factors affect the value of a share? He said: “If we consider the share as an investment option, those who buy and sell stocks, the goal of these people is to make a profit and get a return. Now, if a person expects this return to be higher over a period of time, the contribution will be more valuable.
He added: “In general, the value of stocks fundamentally depends on several factors that can depend on profitability and future cash flows or the volume of their assets.” Each of these two factors can affect the value of the share.
“This is relative,” Tajbar said of the percentage of shares traded below their value. In general, intrinsic value does not have an absolute formula that we want to explain much about. However, stocks in the Iranian capital market are traded cheaper than their intrinsic value, and the reason for this is the high assets of these stocks and high inflation. Which we have experienced in the last one or two years and that is due to the high exports and sales that exist and the increase in the dollar rate that they have experienced.
He added: “Value does not mean that people choose all stock exchanges for investment. Many may compare with the risk in the market and do not prioritize valuable stocks over the high risk of the capital market and prefer money. Put themselves in bank deposits.
This capital market expert on which industries are now trading below their intrinsic value? He said: “Two things that have a great impact on the value of stocks, one is the amount of assets, in this regard, we can refer to the stocks of banks that have very high assets, and the other is the future profitability of commodity-based companies such as petrochemical exporters, refineries.” And named companies in the base metals group; Because these are part of their sales from exports, and the dollar has a significant effect on their profitability, they will be valuable stocks in the future.
Regarding the reason why some stocks are valuable at the moment but no one goes to them, Tajbar replied: “It is due to the high risk of the capital market. I know that if this situation remains stable, it is smart money and it compares the capital market and valuable stocks in the capital market with bank deposits with real estate, goods, coins and other markets, and they will soon realize the value of stocks. Will be welcomed.
Unfortunately, the Iranian stock market has become political!
In response to the question that the price of commodities in the world has increased and the price of oil is also increasing, the expert said: “Due to the issues, many excuses of the stock market have disappeared. Why is the stock market still in this condition?” We are currently in a period that has been unparalleled in the history of the capital market in two ways, one is the increase in corporate profitability due to rising global prices and the other is the inflation debate that exists in the country and distinguishes the market from other investment options. Unfortunately, our stock market has become politicized. When an economic environment takes on a political color and smell, it becomes marginal. These margins have unfortunately caused our stock market to fall behind and people to suffer heavy losses. I hope that these margins will be resolved and the market will return to its original position.
“It has always been proven that in the medium and long term, the capital market has returned higher than the parallel markets, and I think this will be repeated in my opinion,” he said. It will be another month for the created market, and when the political disputes leave the market, our stock market will return to its original position.
Read the latest stock market news on the Trade News Exchange page.
Source: Reporters Club