Връзка между значението на показателя P/E, инфлацията и пазарната възвращаемост на фондовия пазар в България
Correlation Between the P/E Indicator, Inflation and Market Return at the Stock Market of Bulgaria

Author(s): Petko Valkov
Subject(s): Economy, National Economy, Financial Markets
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: P/E Indicator; Rule 20; Market Return; Inflation; Required Rate of Return
Summary/Abstract: The aim of this report is to present the degree at which the Price/Earnings indicator (P/E) of the publicly traded companies in Bulgaria correlates with the so-called Rule 20 regarding the relation between the significance of the P/E and the inflation level in the country as well as the future market return. In other words, author would like to determine whether the P/E indicator, through the Rule 20, could be used to indicate future inflationary levels and market performance in a short run. The P/E indicator is considered a key parameter utilized by investors to analyze the stock market. Its main purpose is to give an answer to the question whether the shares of a publicly traded company are over- or undervalued.

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