Shareholder ratios and technical methods in evaluation of a publicly traded stock

Abstract

The objective of this thesis was to determine the value and relative performance of a publicly traded stock based on calculations derived from financial data. The valuation analysis combined common shareholder ratios, which are based on the relationship between the trading price and different financial variables. The other evaluation method was technical analysis based on different statistical applications, such as moving average, standard deviation, and Beta coefficient. The main goal of the method combination was to give a comprehensive understanding of the valuation of a publicly traded stock. The research used quantitative methods with publicly available financial data and stock price fluctuation history. AT&T Inc. was chosen as the case company, with data processed into shareholder ratios and technical indicators using Microsoft Excel. The comparative review with stocks Verizon Communications and T-Mobile US provided additional depth and corroborated the research reliability by setting the results in context. Results indicated that the case stock was undervalued compared to competitors and the market index with lower value of shareholder ratios and competitive dividend yield. Technical analysis revealed a price downtrend reversing in late 2023 and potential uptrend during 2024. Volatility analysis indicated moderate stability and beta value confirmed the case company as a low-risk stock investment in terms of a market risk. In conclusion, the study demonstrated low valuation in AT&T despite its weaker market position. The findings highlight the value of combining fundamental and technical analysis for comprehensive stock evaluations and practical investment insights.