This paper aims to test the accuracy of three well-known equity valuation models for the period 1990 to 2006. This was done to a sample of German listed firms which diverge from the US market in accounting standards, market maturity and corporate governance culture (bank-based in contrast to the...

We employ a Mixed-Frequency VAR to study the effect of four valuation ratios (the price-dividend ratio, the price-earnings ratio, the Cyclically Adjusted Price Earnings Ratio and the Total Return Cyclically Adjusted Price Earnings Ratio) on the US stock market. We quantify the interaction...

The Dividend Discount return model (DDM) is a stock valuation tool used by many financial institutions. It is a natural generalization of the yield-to-maturity concept used to value bonds. In perhaps its most "standard" form (Sharpe (1981), pp. 381-82), analysts' forecasts of earnings,...