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research. This article investigates the accuracy of the five most popular multiples, including the P/E ratio, in valuing the … revealed that the P/E ratio does not perform the most accurate valuations across all sectors and that different multiples … should be used for different sectors. There is an opportunity to enhance the accuracy of equity valuations based on multiples …
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Multiples valuation represents the most used valuation approach. There are few studies that focus on this method and … of the studies made with US data. At the same time, it is noticed a lower performance of European multiples, explained by …
Persistent link: https://www.econbiz.de/10005581563
/earnings, price/book value, price/sales, enterprise value/EBIT and enterprise value/FCF multiples. Comparables firms are selected by … comparables firms on the basis of sector and ROA or sector and size is more accurate; moreover, valuation improves when multiples … multiples (price/earnings, price/book value, price/sales, enterprise value/sales, enterprise value/book value, enterprise value …
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This paper contains a collection and a classification of the 12 most common errors seen in company valuations performed by financial analysts, investment banks and financial consultants. The author had access to most of the valuations referred to in this paper when consulting in company...
Persistent link: https://www.econbiz.de/10005021741
This paper contains a collection and classification of 80 errors seen in company valuations performed by financial analysts, investment banks and financial consultants. The author had access to most of the valuations referred to in this paper in his capacity as a consultant in company...
Persistent link: https://www.econbiz.de/10005021791
Over the past two decades, considerable academic attention has been given to testing the relationship between accounting numbers and firm value. The Linear Information Model (LIM) has become popular for testing this relationship. Most studies find that the LIM has a negative bias relative to the...
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