The Accuracy of Equity Valuation Using Multiples for Non-Financial Companies
Multiples method has been renowned for equity valuation in empirical studies and practices of finance. This paper intends to give explanation about the extent of performance of various methodology of valuation using multiple for nonfinancial companies equity analysis. P/E multiple, P/BV multiple...
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| Format: | Thesis |
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[Yogyakarta] : Universitas Gadjah Mada
2013
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| Summary: | Multiples method has been renowned for equity valuation in empirical studies and practices
of finance. This paper intends to give explanation about the extent of performance of various
methodology of valuation using multiple for nonfinancial companies equity analysis. P/E
multiple, P/BV multiple and EV/EBITDA multiple are attested to explain variety of market
value of stock price. EV/Sales multiple is less suggested as equity valuation model of nonfinancial
companies. Examination based on non-financial sectors aggregate finds that nonindustrial
sector has lower coefficient estimate of multiple measurements compared to
industrial sector. We suggest, to further investigate, P/BV multiple for equity valuation using
multiples for non-financial companies. |
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