SELECTING INVESTMENT STRATEGIES USING THE MODEL MARKET VALUE / BOOK VALUE OF THE ENTERPRISE

This paper proposes to develop a selection model for investment strategy, which depends on market and book value of the company. The start of this approach is the idea that the financial criterion is the most important criterion in the selection and evaluation of investment strategies. It compares the assets or equity book value upon which the selected investment strategy is based, and the market value of these assets and equity of the company as a result of the application of the selected strategic option. To achieve this, a large number of financial indicators are used, including a wide array of company evaluation methods.