A growing body of literature in accounting and finance relies on implied cost of equity (COE) measures. Such measures are sensitive to assumptions about terminal earnings growth rates. In this paper we develop a new COE measure that is more accurate than existing measures because it incorporates...

This paper demonstrates a method to forecast stock price using analyst earnings forecasts as essential signals of firm valuation. The demonstrated method is based on the Residual Income Model (RIM), with adjustment for auto-correlation. Over the past decade, the RIM is widely accepted as a...

This paper revisits two valuation models based on accounting figures: the Residual Income Valuation (RIV) and Abnormal Earnings Growth (AEG). Our research design has two approaches: i) we demonstrate theoretical integration of both models; and ii) we show in a practical manner that models...