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The Valuation Accuracy of Equity Value Estimates Inferred from Conventional Empirical Implementations of the Abnormal Earnings Growth Model: US Evidence
16 references·2 citing·35 second hop
The Valuation Accuracy of Equity Value Estimates Inferred from Conventional Empirical Implementations of the Abnormal Earnings Growth Model: US Evidence (2011)The Valuation Accuracy of Equity Value Es…Financial statement analysis and security valuation (2013)Financial statement analysis …Expected EPS and EPS Growth as Determinantsof Value (2005)Expected EPS and EPS Growth a…Assessing Alternative Proxies for the Expected Risk Premium (2005)Assessing Alternative Proxies…PE Ratios, PEG Ratios, and Estimating the Implied Expected Rate of Return on Equity Capital (2004)PE Ratios, PEG Ratios, and Es…Inferring the Cost of Capital Using the Ohlson–Juettner Model (2003)Inferring the Cost of Capital…Equity Valuation Using Multiples (2002)Equity Valuation Using Multip…Toward an Implied Cost of Capital (2001)Toward an Implied Cost of Cap…Ratio Analysis and Equity Valuation: From Research to Practice (2001)Ratio Analysis and Equity Val…Equity Premia as Low as Three Percent? Evidence from Analysts' Earnings Forecasts for Domestic and International Stock Markets (2001)Equity Premia as Low as Three…What is the Intrinsic Value of the Dow? (1999)What is the Intrinsic Value o…An empirical assessment of the residual income valuation model (1999)An empirical assessment of th…Accounting valuation, market expectation, and cross-sectional stock returns (1998)Accounting valuation, market …Industry costs of equity (1997)Industry costs of equityEarnings, Book Values, and Dividends in Equity Valuation* (1995)Earnings, Book Values, and Di…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Risk, Return, and Equilibrium (1971)Risk, Return, and EquilibriumA Comparative Analysis of Accounting-Based Valuation Models (2016)A Comparative Analysis of Acc…A review of the literature on methods of computing the implied cost of capital (2015)A review of the literature on…Financing Constraints and Corporate Investment (1987)Financing Constraints and Corporate Investment (1988)Capital markets research in accounting (2001)The Capital Asset Pricing Model: Theory and Evidence (2004)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Cross-Section of Expected Stock Returns (1992)Common risk factors in the returns on stocks and bonds (1993)Multifactor Explanations of Asset Pricing Anomalies (1996)Measuring Mutual Fund Performance with Characteristic‐Based Benchmarks (1997)Conditional Skewness in Asset Pricing Tests (2000)Principles of Corporate Finance. (1981)Valuation and Clean Surplus Accounting for Operating and Financial Activities* (1995)Disclosure level and the cost of equity capital. (1997)Political connections and the cost of equity capital (2012)Corporate social responsibility disclosure and the cost of equity capital: The roles of stakeholder orientation and financial transparency (2014)Judgment under Uncertainty: Heuristics and Biases (1974)Judgment under Uncertainty: Heuristics and Biases (1975)Overconfidence, Arbitrage, and Equilibrium Asset Pricing (2001)Profitability, investment and average returns (2006)Replicating Anomalies (2018)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)Dividend Policy, Growth, and the Valuation of Shares (1961)The Theory and Measurement of Business Income (1961)Does Corporate Social Responsibility Affect the Cost of Capital? (2010)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)On Persistence in Mutual Fund Performance (1997)The equity premium: A puzzle (1985)The Dividend-Price Ratio and Expectations of Future Dividends and Discount Factors (1988)The Equity Premium (2002)Disclosure, Liquidity, and the Cost of Capital (1991)Differences of Opinion and the Cross Section of Stock Returns (2002)Environmental Externalities and Cost of Capital (2014)Accounting anomalies and fundamental analysis: A review of recent research advances (2010)The relevance of environmental disclosures: Are such disclosures incrementally informative? (2013)
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References

  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1997Industry costs of equity5,793 cited
  • 1995Earnings, Book Values, and Dividends in Equity Valuation*5,061 cited
  • 2001Toward an Implied Cost of Capital2,004 cited
  • 2004PE Ratios, PEG Ratios, and Estimating the Implied Expected Rate of Return on Equity Capital1,749 cited
  • 2001Equity Premia as Low as Three Percent? Evidence from Analysts' Earnings Forecasts for Domestic and International Stock Markets1,516 cited
  • 2005Expected EPS and EPS Growth as Determinantsof Value1,414 cited
  • 2013Financial statement analysis and security valuation1,250 cited
  • 1998Accounting valuation, market expectation, and cross-sectional stock returns1,083 cited
  • 1999An empirical assessment of the residual income valuation model918 cited
  • 2003Inferring the Cost of Capital Using the Ohlson–Juettner Model766 cited
  • 2005Assessing Alternative Proxies for the Expected Risk Premium750 cited
  • 2002Equity Valuation Using Multiples738 cited
  • 1999What is the Intrinsic Value of the Dow?716 cited
  • 2001Ratio Analysis and Equity Valuation: From Research to Practice679 cited

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  • 1971Risk, Return, and Equilibrium539 cited
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    • 2015A review of the literature on methods of computing the implied cost of capital30 cited
    • 2016A Comparative Analysis of Accounting-Based Valuation Models27 cited