ENTERPRISE CAPITALISATION AS AN INDICATOR OF FINANCIAL STABILITY AND MARKET VALUE

Abstract

The aim of this article is to examine the nature of a company’s market capitalisation as an integral indicator of financial stability and market value, and to identify the key factors and current trends influencing its formation and growth in the context of an unstable economic environment and digital transformation. The article employs general scientific and specialised research methods, in particular: methods of theoretical generalisation and systematisation – to elucidate the essence of capitalisation; comparative analysis – to examine the evolution of approaches to its interpretation; a systems approach – to substantiate the relationship between capitalisation, financial stability and market value; structural-logical analysis – to identify internal and external factors influencing the formation of capitalisation; and grouping and classification methods – to summarise the factors affecting a company’s market value. The article proves that, in the current climate, a company’s market capitalisation serves not only as a measure of its value, but also as a comprehensive indicator of its financial capacity, investment attractiveness and long-term development. The article justifies the relevance of analysing capitalisation in relation to financial stability, which reflects a company’s ability to maintain solvency, use resources effectively and ensure operational stability. It has been established that the level of capitalisation is shaped by a combination of internal (profitability, capital structure, liquidity, quality of management) and external (market perception, investment expectations, information transparency, reputation) factors. The key areas of capitalisation’s influence on a company’s market value have been identified, and it has been demonstrated that its growth requires a comprehensive approach, which includes improving operational efficiency, optimising the financial structure, developing intangible assets, enhancing corporate governance and implementing digital technologies. The scientific value of this study lies in deepening the theoretical approach to understanding capitalisation as an integrated indicator that combines the financial, managerial and market characteristics of a company’s operations. A systematic view of the relationship between capitalisation, financial stability and market value is proposed through the combination of internal and external indicators, enabling a shift from formal measurement of value to a substantive analysis of the factors shaping it. The practical value lies in the possibility of using the results obtained to substantiate management decisions aimed at ensuring the sustainable growth of a company’s value in the context of digitalisation and heightened risks.