Regulatory model of stock rating assessment: An empirical analysis of PAO Sberbank

Subject. A stock rating assessment approach that overcomes limitations associated with subjectivity, dependence on expert judgments, and low reproducibility of results. Objectives. To test a normative rating model using the example of a major Russian issuer (PAO Sberbank), to demonstrate the feasibility and effectiveness of this approach for fundamental investing, and to confirm the possibility of obtaining an objective and independent assessment. Methods. The study is based on a normative rating model whose concept originates from the principles of the dynamic normative framework developed by I.M. Syroyozhin. The model operates with the dynamics of the market value of shares, dividends, net profit, revenue, equity capital, and the number of shares in circulation, while excluding weighting procedures and expert ranking. The research employs rating theory, comparative and graphical analysis, and the apparatus of matrix theory. Results. A detailed calculation of the stock rating assessment for PAO Sberbank using the normative model is presented. The obtained results confirm the viability of the model and demonstrate that it enables the generation of an independent and comparable integral (rating) indicator, free from subjective judgments and analyst bias. Conclusions. Empirical evidence has been obtained that the normative rating assessment can be used for objective comparative analysis of public companies, the development of investment strategies, and stock ranking. The preference for long-term investing in shares of Russian issuers has been confirmed.