Finance and Credit

Abstracting and Indexing

Referativny Zhurnal VINITI RAS
LCCN Permalink
Google Scholar

Online available



Cyberleninka (24 month OA embargo)

Valuation of the Russian stock market

Vol. 18, Iss. 11, NOVEMBER 2019

Received: 2 September 2016

Received in revised form: 24 October 2016

Accepted: 7 November 2016

Available online: 29 November 2019

Subject Heading: Securities market

JEL Classification: G12

Pages: 2606–2624

Khasanov R.Kh. Financial University under Government of Russian Federation, Omsk Branch, Omsk, Russian Federation

ORCID id: not available

Lavrinenko A.O. Financial University under Government of Russian Federation, Omsk Branch, Omsk, Russian Federation

ORCID id: not available

Subject The article analyzes the value of the Russian MICEX index, determines the extent to which the Russian stock market is underestimated, and assesses the Price-to-Earnings ratio.
Objectives The research measures the value of stocks included into the MICEX index. We pursue using two valuation methods and assessing Price-to-Earnings ratio.
Methods The research applies the cost and discounted cash flow methods to business valuation by measuring the value of stocks and the weighted average cost of the index.
Results As the main results of the research, we measured the value of the MICEX index, Price-to-Earnings ratio of the MICEX index using two methods, thus concluding on the undervalued nature of the Russian stock market.
Conclusions and Relevance We conclude that the Russian stocks are undervalued. It means that the Russian market has a big potential for growth, on the one hand, but there should be certain attempts of the State to cover the gap between the value of the Russian stocks and foreign ones, on the other hand.

Keywords: value, business, stock, MICEX index, Price-to-Earnings ratio


  1. Klarman S.A. Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor. Harper Collins, 1991, 249 p.
  2. Graham B., Zweig J., Buffet W.E. The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel. Harper Business, 2006, 640 p.
  3. Alikperova N.V. [Trends in investment and saving activities of the Russian population]. Narodonaselenie = Population, 2015, no. 3, pp. 85–92. (In Russ.)
  4. Antokhonova I.V., Choizhalsanova A.Ts. [Analyzing spatial distribution and transformation of economic resources of the region’s households]. Fundamental'nye issledovaniya = Fundamental Research, 2015, no. 12-5, pp. 975–980. (In Russ.)
  5. Bobok V.S. [Measuring the value of stocks using dividend discount models]. Finansovyi menedzhment = Financial Management, 2015, no. 2, pp. 21–31. (In Russ.)
  6. Bogatyrev S.Yu. [Principal areas of using modern information systems for valuation of shares]. Kibernetika i programmirovanie, 2014, no. 3, pp. 36–54. (In Russ.) URL: Link
  7. Boldareva Yu.O. [The Russian stock market: development priorities in the current political situation]. Uchenye zapiski Rossiiskoi Akademii predprinimatel'stva = Scientific Notes of Russian Academy of Entrepreneurship, 2015, no. 42, pp. 182–187. (In Russ.)
  8. Busygin Yu.N., Busygin D.Yu. [The use of the Gordon growth model for valuation of shares: profit and investment opportunities]. Aktual'nye problemy sotsial'no-ekonomicheskogo razvitiya predpriyatii, otraslei, kompleksov: materialy nauchnoi konferentsii [Proc. Sci. Conf. Current Issues of Socio-Economic Development of Entities, Industries, Complexes]. Krasnoyarsk, Nauchno-innovatsionnyi tsentr Publ., 2015, pp. 77–83.
  9. Valishina A.M., Rabtsevich A.A. [The Russian stock market: Development trends]. Ekonomika i sotsium, 2013, no. 2-1, pp. 282–284. (In Russ.) URL: Link%20-%201%20.pdf
  10. Volodin S.N., Sorokin I.A. [Formation of high dividend portfolio in the Russian stock market]. Upravlenie korporativnymi finansami = Corporate Finance Governance, 2016, no. 6, pp. 382–390. (In Russ.)
  11. Voroshilova I.V., Fedorenko S.A. [An impact of sanctions on the Russian stock market]. Novaya nauka: opyt, traditsii, innovatsii = New Science: Experience, Tradition, Innovation, 2015, no. 6, pp. 276–278. (In Russ.)
  12. Davnis V.V., Korotkikh V.V. [The Russian stock market: the challenge of globalization]. Ekonomicheskoe prognozirovanie: modeli i metody: materialy nauchnoi konferentsii [Proc. Sci. Conf. Economic Forecasting: Models and Methods]. Voronezh, VSU Publ., 2014, pp. 217–222.
  13. Eliseev V.M. [The reliability criterion for measurement of the market value]. Voprosi Ocenki, 2014, no. 2, pp. 9–20. (In Russ.)
  14. Zakharyuta A.A., Lavrinenko A.O. [Issues of stimulating investment activities of households in financial markets]. Potentsial sotsial'no-ekonomicheskogo razvitiya Rossiiskoi Federatsii v novykh ekonomicheskikh usloviyakh: materialy nauchnoi konferentsii [Proc. Sci. Conf. The Potential for Socio-Economic Development of the Russian Federation in New Economic Conditions]. Moscow, Moscow Witte University Publ., 2015, pp. 179–188.
  15. Kashin S.V. [The Russian stock market: specifics of its structure and the potential for development]. Finansy = Finance, 2014, no. 11, pp. 76–80. (In Russ.)
  16. Klimtsov N.A. [Analysis and valuation of shares]. Sovremennye organizatsionno-ekonomicheskie tendentsii i problemy razvitiya evropeiskogo Severa: materialy nauchnoi konferentsii [Proc. Sci. Conf. Modern Organizational and Economic Trends and Problems of Development of the European North]. Murmansk, MSTU Publ., 2015, pp. 206–210.
  17. Konovalova I.A., Feoktisova M.A. [Contemporary crises in stock markets: foreign and Russian practices]. Vestnik magistratury = Bulletin of the Master's Course, 2016, no. 4-2, pp. 6–7. (In Russ.)
  18. Kulakov Yu.S. [The Russian stock market under the Western sanctions]. Rossiya v novykh sotsial'no-ekonomicheskikh i politicheskikh realiyakh: problemy i perspektivy razvitiya: materialy nauchnoi konferentsii [Proc. Sci. Conf. Russia in New Socio-Economic and Political Realities: Problems and Prospects]. St. Petersburg, Saint-Petersburg State University of Economics Publ., 2015, pp. 70–74.

View all articles of issue


ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 26, Iss. 6
June 2020