Fundamental analysis in stock markets: A case study on insurance compani̇es traded in the BIST between 2008 - 2013 years

The prices of financial instruments are important subject for the participants taking part in capital markets. Determaining what the prices of capital market instruments; especially like bond and stock will be or must be facilitates for the issuers of stock and investors of this financial insturments. There are two types of analysis; fundamental and technical which was developed to comment on the price of stock at the present of in the future. This study in which fundamental analysis method was used is conducted to determine the stocks of traded insurance companies whether they are expensive or discounted based on the prices traded in the market in Borsa İstanbul between the years 2008-2013. While determining the values of stocks, the assestment of the ecomonic situation and insurance sector and financial analysis of the companies between the years 2008-2013 were made with ratio analysis method. Finally with the market multipliers obtained from the market performance ratio have been value to the stocks. Six insurance companies have been examed in this study according to the results, compared to the market prices the most appropriate stocks for investing in terms of financial structure and at a discount are expressed for each year.