The relationship between the rates which are used in financial analysis and firm value, an enforcement in İstanbul Stock Exchange

Nowadays the purpose of firms is to maximize the firm value according to part owners. In this sense, firms take decisions in various issues. Those decisions may be about the issues as; bank current position, profitability, financial position, investment projects, adaptation to technology. Therefore, results of financing adjudication can have effects on firm value.Ratio analysis, one of the financial analysis technique, gives information about bank current position of firm, financial position, asset utilization efficiency, profitability and exchange performance. Firms can direct their possible desicions by the help of ratio analysis results.In this study it was analysed whether there is a relationship between financial rates and firm value and by virtue of these rates the effects of bank current position of firm, financial position, asset utilization efficiency, profitability and exchange performance on firm value.In first part; it was mentioned about the concept of financial analysis and financial analysis techniques, ratio analysis, one of financial analysis techniques, was examined in a detailed way. In second part; it was dwelled on the concept of firm value and its importance. Nonentheless, the methods of firm value calculation and some factors that have effects on firm value; economic, industrial and related to firm was mentioned.Third part, is the final section of the study. In this part, for the purpose of deciding relations between rates used in financial anlyze and firm value, panel data analysis was carried out. In analysis; data of 58 companies, that dealt in Istanbul Stock Exchange and easy to access their datum was used. These datum are firm values of companies and their financial rates.In consequence of panel data analysis, a statically significant relation was detected between 16 of them ,in the rate of included in data set, and firm value. Coefficients that are going to determine the relation between remaining 5 rates and firm value were insignificant. Correspondingly, bank current position, financial position and exchange performance of firm has a considerable effect on its firm value. On the contrary, a significant relation betwen operating ratios and firm value was not detected. As a result, it was observed that there is a relation between a great deal of ratio analysis datum and firm value.