Methodological proposal for the construction of a ranking of issuers in the colombian stock market

Abstract

This paper presents the development and evolution of financial theories associated with the valuation methods. It evaluates the market performance of the shares that meet certain methodological conditions and which are part of the IGBC, COLCAP and COL20 baskets, taking into account the approaches of Modigliani and Miller, Markowitz, Sharpe, Damodaran, among others. It also describes methods for the assessment of companies based on financial statements such as balance sheets, financial statements and cash flows. The proposed methodology involves the development of two matrices: one shows a diagnosis through risk analysis and the performance of the shares under study; another examines the formation of the capital structure as well as its expected return. Finally, a ranking is constructed based on the diagnosis of the market and the capital structure of the companies that issue the shares.