Valuations of WIG20 companies have approached fundamentals. What's next?

We regularly check the theoretical value of the WIG20, which is based on average target prices from current recommendations. This year, we see a strong correlation between the estimated values and the index's movement.

At the beginning of January, according to our calculations, the index's theoretical value reached 2,670 points, implying nearly 20% growth potential. Impressive gains observed on the Warsaw Stock Exchange allowed the index to break through this threshold in the spring. Target prices for companies also rose, and analysis at the time indicated that the index had room to break through 2,800 points. This barrier broke for good in July. At the end of the month, 2,900 points were broken, and last week during Thursday's session, the index soared above the psychological threshold of 3,000 points (it fell slightly below at the end of Thursday's session and on Friday).