The Comparison of The Stocks Price in Government Firms Including Privatization with their Priced Stocks Based on Price-Earnings Ratio Model (P/E) of Similar Firms

• Main Authors: Mohammad Hossein Vadiee, Said Asyabani
• Format: Article
• Language: fas
• Published: University of Tehran 2009-01-01
• Series: تحقیقات مالی
• Subjects: government firms; price-earnings ratio; privatization; similar firms; stocks price
• Online Access: https://jfr.ut.ac.ir/article_20035_f6c577a270529776420161d18cd46f9e.pdf

Today, a way of gaining constant and dynamic development is reforming of the ownerships structure, from governmental ownership to privatization ownership. So this policy in many countries, especially in developing countries, as a strategic policy has been used. Compilation and performing principle 44, s policies of Iran Islamic Republic Law Constitution which Parliament has confirmed. One of the best ways of privatization is denoting stocks by stock change and one of the most important points to reach fulfillment is how to price the denoted stocks. Because of the importance and greatness of pricing stocks, So far many models based on different thoughts have been offered that regarding with economic, politic, regional and other conditions have shown various and different usages. Then, in this research, the denoted price of government firms including privatization has been compared and studied with these stocks based on theoretical scientific model in Tehran Stocks. So among evaluation models of stocks in point of comparable firms, view, Price-Earnings Ratio Model (P/E) of similar firms has been selected and then the prices of government firms including denoted based on this model during 2005, 2006 and 2007 have been calculated, and then studied and compared. The results of this research indicate that there is no meaningful relation between the prices of the denoted stocks and the prices obtained from Price-Earnings Ratio Model (P/E) of similar firms. Also, there is a direct meaningful relation, with high care between them. The Findings of this research indicates that Privatization Organization can use of Price-Earnings Ration (P/E) of similar firms in searching of making the best of approved stock pricing.