National Research Nuclear University “MEPhI”, Moscow, Russia:

V. G. Kogdenko, Head of a Chair of Financial Management, e-mail: VGKogdenko@mephi.ru
A. V. Putilov, Dean of a Faculty of Management and Economics of High Technologies
A. G. Vorobev, Head of a Chair of Economics

This article shows the method for analysis of company's market capitalization, which is the third final stage of fundamental analysis. This technology involves the analysis of the dynamics of capitalization and financial indicators; analysis of absolute and relative indicators value; calculation of profitability of investments in the company shares; calculation of multipliers and assessment of market expectations about future cash flows and company's growth rate. The offered method includes the calculation of indicators to assess the degree of variation of capitalization and volatility of the company's financial results (including indicators of residual earnings; residual operating income; market value added; spread efficiency; performance index; margin of economic profit for the value created assessment; indicators of dividend, capital and total return to assess the investment attractiveness in the company shares). For the purpose of analysis of market expectations in methodology, there is foreseen the calculation and interpretation of multipliers (namely the multiplier P/E) with the help of an estimated payback period of investment in business, capitalization rate, and expected rate of the company's growth. Analytical indicators were calculated according to annual reports, consolidated statements of MMC “Norilsk Nickel”, and the data, used in the company's capitalization calculations. This article may be interesting to specialists of financial services, making financial decisions in the context of value-based management; long-term investors; representatives of public authorities in the field of strategic planning; and commodity markets' analysts.

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