The effects of exchange rate appreciation on the stock value of pharmaceutical companies based on the estimated value obtained from the evaluation models of cash dividend discount, free cash flow and residual profit and real price

Subject Areas : business management

Javad Einabadi ¹ , nayereh moradi ²

1 - Department of Financial Engineering and Risk Management, Faculty of Accounting, Iranian University of Tehran, Tehran, Iran.
2 - Department of Financial Engineering and Risk Management, Faculty of Accounting, Iranian University of Tehran, Tehran, Iran.

Received: 2021-06-14 Accepted : 2021-08-18 Published : 2021-12-22

Keywords: Exchange rate fluctuations, Evaluation of stock prices of pharmaceutical companies, Discount of cash flow of the company,

Abstract :

The effect of exchange rate appreciation on the stock value of pharmaceutical companies based on the estimated value obtained from the evaluation models of cash dividend discount, free cash flow and residual profit and real priceAbstractIn order to conduct this research, basic information and stock prices of 52 pharmaceutical companies listed on the Tehran Stock Exchange during the years 1390 to 1398 have been collected and used in evaluation using the cash flow discount model and other models. (1) And testing the first hypothesis of the research, in order to calculate the stock valuation for pharmaceutical companies using three models of discounted dividend, discounted dividend and discounted free cash flow, showed that the estimated stock price using the discounted dividend model has the highest Dispersion and with the discount dividend model has the lowest dispersionThe results show that at 75% confidence level there is a direct relationship between exchange rate fluctuations and stocks of pharmaceutical companies and between the three models of price estimation and real stock prices, at least one group average is different from other groups. (2)