Assessing Relative Valuation In Equity Markets: Bridging Research And Practice
by Emanuele Rossi /
2016 / English / PDF
2.1 MB Download
This book addresses the gap between the widespread use of stock
market multiples in valuation practice and the frontiers of
research on multiples. The book's approach is twofold: the
authors first analyse the performance of multiples metrics in
predicting the market price of a set of liquid and highly traded
US stocks. The authors then employ these results to test
profitable stock purchasing strategies employed in order to 'beat
the market'. The results presented widen our understanding of the
“market performances” of the valuation tools practitioners
utilise in their everyday work. The evidence is of interest to
researchers and equity analysts, who wish to analyse the
circumstances in which valuation errors using multiples are more
frequent and when market multiples become ineffective in
estimating market prices.
This book addresses the gap between the widespread use of stock
market multiples in valuation practice and the frontiers of
research on multiples. The book's approach is twofold: the
authors first analyse the performance of multiples metrics in
predicting the market price of a set of liquid and highly traded
US stocks. The authors then employ these results to test
profitable stock purchasing strategies employed in order to 'beat
the market'. The results presented widen our understanding of the
“market performances” of the valuation tools practitioners
utilise in their everyday work. The evidence is of interest to
researchers and equity analysts, who wish to analyse the
circumstances in which valuation errors using multiples are more
frequent and when market multiples become ineffective in
estimating market prices.
