ANALYSIS OF COMPANIES OF THE CONSTRUCTION SECTOR IN POLAND BASED ON AN EXAMPLE OF THE QUOTED COMPANIES AND THEIR FAIR VALUE

According to forecasts of research companies, the year of 2014 will end in one-digit increase for the construction industry, and in 2015, another 8-10% will be recorded. This optimism follows from the fact that the largest construction companies, which are relatively well-off even during the recession, were qualified for the study. The construction boom has already established itself in Poland and in the world from two years, which currently results in the increase of the property prices, and the spectre of decrease in the property prices is fading into oblivion. However, it has to be borne in mind what was learnt at the turn of 2007 and 2008, where the property prices rapidly decreased, and interest rates of credit soared upwards, which resulted in collapse of the property market and large bankruptcies. The construction boom examined and calculated by the Central Statistical Office (CSO) is not as optimistic as the ratios for the construction provided by large construction companies. The construction companies of all sizes take part in the CSO study, and the medium, small and micro companies assess the situation unfavourably. According to CSO, the construction boom was 11 minus in October 2014, and it was lower than that recorded in September, by 4 points. The construction companies quoted on the Warsaw Stock Exchange on the WIGBUDOWNICTWO index were subjected to the study. During the study it was demonstrated how the construction companies deal on the property market and what financial results they achieve. They were subjected to a thorough economic analysis, and their value over the years was determined. At the same time, it was examined whether companies of the construction sector have the fair value or if they covered the losses from the time of the first global economic crisis and the collapse occurred at the time on the property market, in which pieces of properties can be bought even 50% cheaper.