Indirect Firm Valuation and Earnings Stability Report as inadecuate




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Abstract

This paper investigates statistical significance of earnings stability in the within-company indirect valuation method. We empirically establish superiority of a within-company earnings multiple valuation technique for the relatively most stable companies. Favourable empirical results are robust against different means of operationalization of the stability construct and valuation multiples. Results of this paper indicate that the indirect within-company price-to-earnings valuation yields the most precise and the most accurate value estimates.



Item Type: MPRA Paper -

Original Title: Indirect Firm Valuation and Earnings Stability-

Language: English-

Keywords: Investment Decision; Company Valuation; Earnings Properties-

Subjects: G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment DecisionsG - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest RatesM - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M41 - Accounting-





Author: Janda, Karel

Source: https://mpra.ub.uni-muenchen.de/77234/







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