%0 Journal Article
%T INVESTMENT DECISIONS BASED ON FUNDAMENTAL ANALYSIS OF SHARE PRICES OF ELEKTROKRAJINA a.d. BANJA LUKA
%A Dragan Milovanovi£¿
%J Zbornik Radova Ekonomskog Fakulteta u Isto£¿nom Sarajevu
%D 2012
%I Ekonomski fakultet u Isto?nom Sarajevu
%X The latest wave of economic crisishas influenced strongly the volatility of share prices inthe capital market of the Republic of Srpska. The basicresearch questions to which answers are required inmaking investment decisions are: whether the pricesof shares are undervalued or overvalued, whether theprice is determined by specific and measurable factorsand whether it is predictable for investors. The marketprice of shares can significantly deviate from the realintrinsicvalue of shares. Making investment decisionsin such circumstances requires quantitative analysiswith the aim of determining the real-intrinsic value ofshares. In this paper, the method of fundamentalanalysis of share prices will be used as a basicconcept of assessing the value, ie. intrinsic evaluationof value of the shares. The main goal of fundamentalanalysis is identifying the weaknesses of the marketduring the formation of market share price, throughelaborating the amount of deviation of the marketprice of shares relative to the real-intrinsic value ofshares. The paper presents an analysis of share pricesthat make up the index of Electric Power Company ofthe Republika Srpska (ERS10). The aim of the paper isto elaborate underestimation or overvaluation ofshare prices of the company Elektrokrajina a.d. BanjaLuka (EKBL-R-A) based on fundamental analysis ofthe company's share prices. As a result, analysis andmathematical interpretation of the economic doctrineof fundamental analysis and its appli-cation in thecapital market of the Republika Srpska, as shownusing the example of Elektrokrajina a.d. Banja Luka,indicated the possibility of decision-making oninvesting into securities based on this theoreticalconcept.
%K Fundamental analysis
%K market share price
%K intrinsic value of shares
%K discounted cash flows
%K relative evaluation
%U http://www.ekofis.org/images/dokumenti/Aktivnosti/zr2012/189-202%20-%20Dragan%20Milovanovic.pdf