Market-based valuation multiples: Evidence from agribusiness sector
This article investigates the choice of multiples in valuing the agribusiness firms in Malaysia from 2003 to 2009. The agribusiness industry typically employs homogenous business models and produces standardized products, thus rendering excellent empirical settings to reveal the value drivers of suc...
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| Format: | Article |
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Universiti Putra Malaysia
2015
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| _version_ | 1796860521211756544 |
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| author | Goh, Chin Fei Md. Rasli, Amran Dziekonski, Krzysztof Khan, Saif Ur Rehman |
| author_facet | Goh, Chin Fei Md. Rasli, Amran Dziekonski, Krzysztof Khan, Saif Ur Rehman |
| author_sort | Goh, Chin Fei |
| collection | ePrints |
| description | This article investigates the choice of multiples in valuing the agribusiness firms in Malaysia from 2003 to 2009. The agribusiness industry typically employs homogenous business models and produces standardized products, thus rendering excellent empirical settings to reveal the value drivers of such traditional industries. It was discovered that commonly adopted methodologies in valuation multiples are associated with pitfalls which may hamper the reliability of the valuations. Our findings also showed that price-to-earnings multiple leads to the best valuation performance, while price-to-sales multiple produces the worst results. Moreover, this research showed that growth prospect is an effective control factor in multiples valuation. |
| first_indexed | 2024-03-05T19:42:36Z |
| format | Article |
| id | utm.eprints-58501 |
| institution | Universiti Teknologi Malaysia - ePrints |
| last_indexed | 2024-03-05T19:42:36Z |
| publishDate | 2015 |
| publisher | Universiti Putra Malaysia |
| record_format | dspace |
| spelling | utm.eprints-585012022-04-05T01:50:40Z http://eprints.utm.my/58501/ Market-based valuation multiples: Evidence from agribusiness sector Goh, Chin Fei Md. Rasli, Amran Dziekonski, Krzysztof Khan, Saif Ur Rehman HD28 Management. Industrial Management This article investigates the choice of multiples in valuing the agribusiness firms in Malaysia from 2003 to 2009. The agribusiness industry typically employs homogenous business models and produces standardized products, thus rendering excellent empirical settings to reveal the value drivers of such traditional industries. It was discovered that commonly adopted methodologies in valuation multiples are associated with pitfalls which may hamper the reliability of the valuations. Our findings also showed that price-to-earnings multiple leads to the best valuation performance, while price-to-sales multiple produces the worst results. Moreover, this research showed that growth prospect is an effective control factor in multiples valuation. Universiti Putra Malaysia 2015 Article PeerReviewed Goh, Chin Fei and Md. Rasli, Amran and Dziekonski, Krzysztof and Khan, Saif Ur Rehman (2015) Market-based valuation multiples: Evidence from agribusiness sector. Pertanika Journal Of Social Science And Humanities, 23 (1). pp. 209-222. ISSN 0128-7702 http://www.pertanika.upm.edu.my/resources/files/Pertanika%20PAPERS/JSSH%20Vol.%2023%20(1)%20Mar.%202015/14%20JSSH-1056-2013.pdf |
| spellingShingle | HD28 Management. Industrial Management Goh, Chin Fei Md. Rasli, Amran Dziekonski, Krzysztof Khan, Saif Ur Rehman Market-based valuation multiples: Evidence from agribusiness sector |
| title | Market-based valuation multiples: Evidence from agribusiness sector |
| title_full | Market-based valuation multiples: Evidence from agribusiness sector |
| title_fullStr | Market-based valuation multiples: Evidence from agribusiness sector |
| title_full_unstemmed | Market-based valuation multiples: Evidence from agribusiness sector |
| title_short | Market-based valuation multiples: Evidence from agribusiness sector |
| title_sort | market based valuation multiples evidence from agribusiness sector |
| topic | HD28 Management. Industrial Management |
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