ESCP Europe

Item type

Dissertation/Thesis/Student Research Project

Dissertation

• Third year Cycle Master 2

Language

anglais

Pages

88 p.

Publication year

2012

Region

• HONG-KONG

Note

• Annexes.

Note

Bibliography

There is significant evidence that European equities are currently undervalued. The current state of crisis that plagues the global economy has caused the share price and market capitalization of a number of European companies to plummet while liquidity was greatly affected leaving most of them without reasonable access to public equity for their financing needs. Moreover, due to the heightened risk aversion and the flight-to-quality tendency of investors in bear markets, some companies see very little trading volumes on their stocks as well as little interest from analysts. These factors also contribute to driving the stock price downwards and widening the gap between the market value and the intrinsic value of the company.