We compare the valuation accuracy of the equity value estimates inferred from empirical implementations of the abnormal earnings growth model (Ohlson and Juettner-Nauroth 2005; the OJ estimates) with the residual income model (Ohlson 1995; the RIV estimates). We find that the OJ estimates generally...

We study the use of residual income (RI) valuation methods by U.S. sell-side equity analysts, particularly as compared to DCF. We document that RI valuations are rare — just 1/16th as common as DCF — and that different RI and DCF valuations are not infrequently provided by the same analyst...

Chapter 1: Introduction -- Chapter 2: The Basics Of Time Value Of Money -- Chapter 3: Valuation Of Cash Flows, Annuities And Perpetuities -- Chapter 4: Sources And Cost Of Long-Term Capital -- Chapter 5: Valuation Of Fixed Income Securities -- Chapter 6: Valuation Of Equities -- Chapter 7: Firm...