Assessing Relative Valuation in Equity Markets: Bridging Research and Practice

by Emanuele Rossi, Gianfranco Forte

Overview

This book addresses the gap between the widespread use of sk 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 sks. The authors then employ these results to test profitable sk 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.

Product Details

ISBN-13:	9781137563347
Publisher:	Palgrave Macmillan UK
Publication date:	04/30/2016
Edition description:	1st ed. 2016
Pages:	180
Product dimensions:	5.83(w) x 8.27(h) x (d)

About the Author

Emanuele Rossi is Associate Professor of Corporate Finance at the University of Milan-Bicocca, Italy. He has previously held various positions in other Italian business schools and universities. His main research interests are: corporate finance, financial markets, business valuation, SMEs and entrepreneurial finance.-

Gianfranco Forte is tenured Assistant Professor of Investment at the University of Milan-Bicocca, Italy, and adjunct professor of Finance at Bocconi University, Italy. He is advisor for several financial institutions and funds on risk and asset management field. His main research interests are: financial market anomalies, advanced asset management, portfolio management, risk management.

Table of Contents

Chapter 1. Relative Valuation: Issues and General Framework.- Chapter 2.Literature Background.- Chapter 3.Accuracy Performance of Relative Valuation.- Chapter 4. A Portfolio Approach: Multiples' Accuracy and Sk Selection.- Conclusion.