Equity valuation using multiples:A comparative study showing the best predictor

vaid, mrinal (2011) Equity valuation using multiples:A comparative study showing the best predictor. [Dissertation (University of Nottingham only)] (Unpublished)

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This study examines different value driver’s explanatory power on the stock prices. I found this study fascinating as enlightens the reasons behind the extensive use of multiples to estimate equity’s intrinsic value and also consequently influences the existence of multiples during a company’s financial analysis.

Two approaches which are used in this paper are the pricing error analysis and Regression analysis for making comparison among the performance of the key value drivers. I also did a comparison between value driver’s performances across different industries. I used data of the all the firms in United States for the period of twenty years i.e. from 1988 to 2007. I got all this data from COMPUSTAT and CRSP. After completing my study I conclude that explains the stock prices reasonably well as they carry value relevant information. Performance results for value drivers across different industries confirmed that industry specific multiples are present.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 25 Apr 2012 14:47
Last Modified: 17 Feb 2018 14:02
URI: https://eprints.nottingham.ac.uk/id/eprint/25327

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