Equity Valuation Using Multiples (eBook)

An Empirical Investigation

Andreas Schreiner (Autor)

eBook Download: PDF

2009 | 1. Auflage
173 Seiten
DUV Deutscher Universitäts-Verlag
9783835095311 (ISBN)

Infos

Accounting-based market multiples are the most common technique in equity valuation. Multiples are used in research reports and stock recommendations ofboth buy-side and sell-side analysts, in fairness opinions and pitch books of investment bankers, or at road shows offirms seeking an IPO. Even in cases where the value of a corporation is primarily determined with discounted cash flow, multiples such as PIE or market-to-book play the important role of providing a second opinion. Mul­ tiples thus form an important basis of investment and transaction decisions of vari­ ous types of investors including corporate executives, hedge funds, institutional in­ vestors, private equity firms, and also private investors. In spite of their prevalent usage in practice, not so much theoretical back­ ground is provided to guide the practical application of multiples. The literature on corporate valuation gives only sparse evidence on how to apply multiples or on why individual multiples or comparable firms should be selected in a particular context.

Autor

Dr. Andreas Schreiner promovierte bei Professor Dr. Klaus Spremann am Schweizerischen Institut für Banken und Finanzen der Universität St.Gallen (HSG).

Inhalt

Foreword 7
Preface 9
Executive summary 11
Brief contents 12
Contents 14
List of figures 18
List of tables 19
Notations and abbreviations 20
1 Introduction 23
1.1 Motivation 23
1.2 Research idea 27
1.3 Outline of the book 33
2 Literature review 35
2.1 Coverage in standard literature 35
2.2 Empirical research 37
2.3 Contribution to prior research 42
3 Theoretical foundations 44
3.1 Theoretical concept of fundamental equity valuation models 44
3.2 Derivation of intrinsic multiples 53
3.3 Market multiples 60
4 Comprehensive multiples valuation 70
4.1 The standard multiples valuation method and its criticism 70
4.2 Selection of value relevant measures 78
4.3 Identification of comparable firms 90
4.4 Estimation of synthetic peer group multiples 96
4.5 Actual valuation 98
4.6 Two-factor multiples valuation model 102
5 Design of the empirical study 106
5.1 The concept of value relevance 106
5.2 Research hypotheses 110
5.3 Research methodology 111
5.4 Data and sample 115
6 Empirical results 120
6.1 Cross-sectional analysis 120
6.2 Industry analysis 135
6.3 Evaluation of empirical results 143
7 Conclusion 149
7.1 Summary of findings 149
7.2 Implications for practice 151
7.3 Research outlook 152
Appendix A: ICB industry classification structure 153
Appendix B: U.S. evidence 157
Appendix C: Definition 173
References 177

Produkt-Details

• Erscheint lt. Verlag: 15.4.2009
• Reihe/Serie: Schriften zum europäischen Management
• Reihe/Serie: Schriften zum europäischen Management
• Vorwort: Prof. Dr. Klaus Spremann
• Zusatzinfo: XXV, 173 p.
• Verlagsort: Wiesbaden
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre
• Schlagworte: Corporate Finance • Finanzierung • Investition • Multiples • Unternehmensbewertung • Valuation
• ISBN-13: 9783835095311 / 9783835095311