Growth Factors of Public Companies` Market Capitalization in the Modern Economy

Student: Andreasian Tigran

Supervisor: Anna Lukianova

Educational Programme: Business Administration (Bachelor)

Year of Graduation: 2021

The main purpose of the study was to identify new factors influencing the growth of market capitalization of companies in the modern economy. This paper analyzed market capitalization as an approach to assessing the value of the company and as a tool in making strategic and investment decisions. The main approaches to the valuation of companies were considered and the main macroeconomic indicators affecting the quotation of securities were identified. Also, the value of Zoom Video Communications and GameStop companies was estimated by the method of discounted cash flows for further identification of the overestimation of their market capitalization values. At the end, a regression analysis was conducted to determine the factors that influenced this growth and the reasons for the influence of these factors were explained. The main result of the study is the determination of the indicators "COVID-19 Disease" and "Collusion in social networks" as the main factors that influenced the growth of the market capitalization of Zoom and GameStop.

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