The study and evaluation of stocks’ valuation models in Tehran Stock Exchange

Abstract

In today’s world, with the expansion of privatization and turning toward the purchase and sale of shares, the need to extensive research is felt in the field of accounting and finance. One of these important areas refers to the studies relevant to stocks valuation and specifying effective variables in determining the price of shares. This study is done with the aim of testing different valuation models of stocks based on basic variables in the economic environment of Iran and tries to identify basic variables as well as introducing a model for pricing stock through testing several stocks valuation models which has the most important role in explaining the stock prices of Iranian companies. The regression was used to test the stocks valuation models. The results obtained from this study indicated that the model of price to book value ratio (P/B) has the highest adjusted coefficient of determination and is determined as the best stocks’ valuation model among the models tested