Empirical results


The following chapter is divided into three parts. First, I carry out a cross-sectional analysis. Thereby, I identify comparable firms based on the ICB sector level — identical 3-digit industry codes. The only exceptions occur in subsection 6.1.3 where I evaluate the valuation accuracy of knowledge-related multiples in science-based industries (defined on the ICB supersector level) and in subsection 6.1.5 where the fineness of the industry definition itself is in question. In the second part, an analysis of five key industries (defined on the ICB supersector level) investigates the existence of industry-preferred multiples and the performance of single versus combined multiples in each industry. The chapter concludes with a validation of the empirical results for the European sample using the U.S. sample and a discussion of the limitations of the study.


Cash Flow Earning Forecast Income Statement Valuation Accuracy Absolute Valuation 


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