PRACTICAL ASPECTS OF NATIONAL COMPANIES MARKET CAPITALIZATION

Abstract

The main goal of the article is to summarize existing approaches to defining enterprise market capitalization and to disclose practical aspects of its formation within domestic companies whose shares are freely traded on the market. The relevance of the topic is driven by the importance of addressing the issue of increasing market capitalization for domestic enterprises. Resolving this issue would contribute to attracting additional capital for the companies, necessary to counteract the existing market challenges. The methodological framework of the work is based on a system of applied research methods: theoretical generalization – to clarify the essence of the concept of “enterprise market capitalization”; analytical and grouping – to form lists and further analyze domestic companies issuing shares in terms of the main “platforms” for increasing market capitalization; structural analysis – to characterize the “indicators” of market capitalization formation and determine the relative weight in their structure of leading enterprises; calculation and analytical – to determine the market capitalization of leading domestic enterprises, the shares of which are freely traded on the market; logical generalization – for drawing conclusions and developing recommendations based on the research results. Based on a critical analysis of the approaches of modern scientists to defining the essence of the concept “enterprise market capitalization”, a new one is proposed, which is identified with the indicator of determining the value of the enterprise, which outlines the level of investor confidence in the enterprise, its future success. An analysis of domestic share-issuing companies in terms of the main “trading platforms” for increasing market capitalization, as of 2022, revealed their greater presence on the “PFTS” exchange (76 domestic enterprises) compared to “UB” (22 enterprises). The structural analysis of the “indicators” of market capitalization formation for leading domestic enterprises revealed a discrepancy in approaches to their balancing, which is reflected in the construction of the structures. In particular, the PFTS index has a focus on the machinery sector (32.0% of the entire structure), while the UX index is oriented towards the agricultural sector (41.1% of the entire structure). The calculation of the market capitalization of leading domestic companies, based on the valuation approach, revealed that as of the end of 2022, the highest level of market capitalization among domestic companies with shares traded on the market belongs to “Kernel Holding” – UAH 21,840.0 million and PJSC “MHP” – UAH 20,758.0 million. The market capitalization of other companies ranges from UAH 424.8 million to UAH 2,007.3 million, which is influenced by the stock prices of the companies and the number of their shares outstanding. The practical value of the article lies in the possibility of using its results for a comparative analysis of the market capitalization of enterprises on different “trading platforms” and determining further ways of its increase.