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Assessing Relative Valuation in Equity Markets

Bridging Research and Practice

  • Emanuele Rossi
  • Gianfranco Forte

Table of contents

  1. Front Matter
    Pages i-xiv
  2. Emanuele Rossi, Gianfranco Forte
    Pages 1-4
  3. Emanuele Rossi, Gianfranco Forte
    Pages 5-25
  4. Emanuele Rossi, Gianfranco Forte
    Pages 27-44
  5. Emanuele Rossi, Gianfranco Forte
    Pages 45-89
  6. Emanuele Rossi, Gianfranco Forte
    Pages 91-113
  7. Emanuele Rossi, Gianfranco Forte
    Pages 115-119
  8. Back Matter
    Pages 121-180

About this book

Introduction

This book addresses the gap between the widespread use of stock market multiples in valuation practice and the frontiers of research on multiples. The book's approach is twofold: the authors first analyse the performance of multiples metrics in predicting the market price of a set of liquid and highly traded US stocks. The authors then employ these results to test profitable stock purchasing strategies employed in order to 'beat the market'. The results presented widen our understanding of the “market performances” of the valuation tools practitioners utilise in their everyday work. The evidence is of interest to researchers  and equity analysts, who wish to analyse the circumstances in which valuation errors using multiples are more frequent and when market multiples become ineffective in estimating market prices.

Keywords

Equity Valuation Market Multiples Multiples' Accuracy Performances Relative Valuation Framework Stock Selection Portfolio Building Capital Markets

Authors and affiliations

  • Emanuele Rossi
    • 1
  • Gianfranco Forte
    • 2
  1. 1.University of Milan-Bicocca,MilanItaly
  2. 2.University of Milan-Bicocca,MilanoItaly

Bibliographic information

  • DOI https://doi.org/10.1057/978-1-137-56335-4
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2016
  • Publisher Name Palgrave Macmillan, London
  • eBook Packages Economics and Finance
  • Print ISBN 978-1-137-56334-7
  • Online ISBN 978-1-137-56335-4
  • Buy this book on publisher's site
Industry Sectors
Finance, Business & Banking