Schreiner Equity Valuation Using Multiples

An Empirical Investigation
2007
ISBN: 978-3-8350-9531-1
Verlag: Deutscher Universitätsverlag
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 173 Seiten, eBook

Reihe: Schriften zum europäischen Management

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.

Zielgruppe

Research

Autoren/Hrsg.

Schreiner, Andreas

Weitere Mitwirkende

Spremann, Prof. Dr. Klaus

Inhaltsverzeichnis

1;Foreword;7
2;Preface;9
3;Executive summary;11
4;Brief contents;12
5;Contents;14
6;List of figures;18
7;List of tables;19
8;Notations and abbreviations;20
9;1 Introduction;23
9.1;1.1 Motivation;23
9.2;1.2 Research idea;27
9.3;1.3 Outline of the book;33
10;2 Literature review;35
10.1;2.1 Coverage in standard literature;35
10.2;2.2 Empirical research;37
10.3;2.3 Contribution to prior research;42
11;3 Theoretical foundations;44
11.1;3.1 Theoretical concept of fundamental equity valuation models;44
11.2;3.2 Derivation of intrinsic multiples;53
11.3;3.3 Market multiples;60
12;4 Comprehensive multiples valuation;70
12.1;4.1 The standard multiples valuation method and its criticism;70
12.2;4.2 Selection of value relevant measures;78
12.3;4.3 Identification of comparable firms;90
12.4;4.4 Estimation of synthetic peer group multiples;96
12.5;4.5 Actual valuation;98
12.6;4.6 Two-factor multiples valuation model;102
13;5 Design of the empirical study;106
13.1;5.1 The concept of value relevance;106
13.2;5.2 Research hypotheses;110
13.3;5.3 Research methodology;111
13.4;5.4 Data and sample;115
14;6 Empirical results;120
14.1;6.1 Cross-sectional analysis;120
14.2;6.2 Industry analysis;135
14.3;6.3 Evaluation of empirical results;143
15;7 Conclusion;149
15.1;7.1 Summary of findings;149
15.2;7.2 Implications for practice;151
15.3;7.3 Research outlook;152
16;Appendix A: ICB industry classification structure;153
17;Appendix B: U.S. evidence;157
18;Appendix C: Definition;173
19;References;177

Literature review.- Theoretical foundations.- Comprehensive multiples valuation.- Design of the empirical study.- Empirical results.- Conclusion.

Über Autor(innen)

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