The purpose of this paper is to determine how to produce best estimates of intrinsic value, as measured by 36 month abnormal returns, using IBES only forecasts, VL only forecasts, or forecasts from both services. IBES only provides earnings forecasts, while VL provides forecasts of earnings,...

The primary objective of this paper is to assess the gain in valuation accuracy when the analyst performs an exhaustive pro-forma about the target firm beyond the four-year forecast horizon under the direct method, compared to the alternative of using heuristic industry multiples to compute...

Recently, Penman and Sougiannis (1998) and Francis, Olsson and Oswald (1999) compared the bias and accuracy of the dividend discount model (DDM), discounted cash flow model (DCF), and Edwards-Bell-Ohlson residual income model (RIM) in explaining the relation between value estimates and observed...

In this paper, we assess the relative performance of the direct valuation method and industry multiplier models using 41,435 firm-quarter Value Line observations over an 11-year (1990-2000) period. Results from both pricing-error and return-prediction analyses indicate that direct valuation...

Recently, Penman and Sougiannis (1998) and Francis, Olsson and Oswald (1999) compared the bias and accuracy of the dividend discount model (DDM), discounted cash flow model (DCF), and Edwards-Bell-Ohlson residual income model (RIM) in explaining the relation between value estimates and observed...

In this paper, we assess the relative performance of the direct valuation method and industry multiplier models using 41,435 firm-quarter Value Line observations over an 11-year (1990-2000) period. Results from both pricing-error and return-prediction analyses indicate that direct valuation...

In this paper, we assess the relative performance of the direct valuation method and industry multiplier models using 41 435 firm-quarter Value Line observations over an 11 year (1990-2000) period. Results from both pricing-error and return-prediction analyses indicate that direct valuation...

The purpose of this study is to examine empirically how the presence of earnings management may affect firm valuation. We compare the performance of earnings-based (e.g., Residual Income Model, RIM) and non-earnings-based (e.g., Discounted Cash Flow, DCF) valuation models, measured by absolute...