Valuation of Companies in Mexico from 2006 to 2017 through capitalization value and economic value added

Purpose: To explain the relationship between the value of Mexican Stock Exchange companies (BMV) measured through the capitalization value and economic value added (EVA) methods, at a sector level, from 2006 to 2017.Methodological design: The EVA and capitalization value methods were applied in the...

Descripción completa

Detalles Bibliográficos
Autor: Álvarez Torres, Ricardo
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:México
Institución:UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO
Repositorio:Entreciencias: diálogos en la sociedad del conocimiento
Idioma:español
OAI Identifier:oai:ojs.pkp.sfu.ca:article/80937
Acceso en línea:https://revistas.unam.mx/index.php/entreciencias/article/view/80937
Access Level:acceso abierto
Palabra clave:Firm value
corporate finance
corporate ownership
financial economics.
valor de la compañía
finanzas corporativas
propiedad corporativa
economía financiera.
Descripción
Sumario:Purpose: To explain the relationship between the value of Mexican Stock Exchange companies (BMV) measured through the capitalization value and economic value added (EVA) methods, at a sector level, from 2006 to 2017.Methodological design: The EVA and capitalization value methods were applied in the period from 2006 to 2017, taking the companies listed on the Mexican Stock Exchange as the sample; a Pearson relationship correlation was then measured between both indicators.Results: No relationship was found between the company’s value measured through capitalization value and EVA during the studied time span. Capitalization value tends to rise while EVA shows a light downward trend.Research limitations: The number of companies in each sector is small with some sectors comprised by one company only.Findings: Since capitalization value shows a rising tendency while EVA’s decreases, it is affirmed that sample companies did not create value but rather they did increase their capitalization value, which suggest a boost to commercial operations of companies’ shares with no link to value creation.