Advanced Topics in Accounting

Equity Valuation using Accounting Numbers in cyclical and acyclical Industries

Business & Finance, Accounting
Cover of the book Advanced Topics in Accounting by Konrad Leithäuser, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Konrad Leithäuser ISBN: 9783640819065
Publisher: GRIN Publishing Publication: February 7, 2011
Imprint: GRIN Publishing Language: English
Author: Konrad Leithäuser
ISBN: 9783640819065
Publisher: GRIN Publishing
Publication: February 7, 2011
Imprint: GRIN Publishing
Language: English

Master's Thesis from the year 2010 in the subject Business economics - Accounting and Taxes, grade: 80,0, Lancaster University (Lancaster University Management School), course: MSc of Accounting & Financial Management, language: English, abstract: The aim of this master thesis is to understand if a firm's dependency on the over-all business cycle impacts the performance of accounting-based valuation mod-els. I evaluated stock- and flow-based valuation models and their performance across cyclical and acyclical industries and found that multi-period flow-based models perform well for cyclical firms, while acyclical firms are more accurately valued via market multiples (P/E-multiple). In extension of the empirical findings, an analysis of valuation models used in analyst reports points out that practitioners do not necessarily employ the theoretically superior valuation technique to generate their target prices - while practically used and empirically superior valuation models are consistent in acyclical industries, they significantly differ in cyclical industries. Furthermore, the analysis in this master thesis highlights that analysts show the tendency to adopt different valuation models dependent on the actual cycle phase.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Master's Thesis from the year 2010 in the subject Business economics - Accounting and Taxes, grade: 80,0, Lancaster University (Lancaster University Management School), course: MSc of Accounting & Financial Management, language: English, abstract: The aim of this master thesis is to understand if a firm's dependency on the over-all business cycle impacts the performance of accounting-based valuation mod-els. I evaluated stock- and flow-based valuation models and their performance across cyclical and acyclical industries and found that multi-period flow-based models perform well for cyclical firms, while acyclical firms are more accurately valued via market multiples (P/E-multiple). In extension of the empirical findings, an analysis of valuation models used in analyst reports points out that practitioners do not necessarily employ the theoretically superior valuation technique to generate their target prices - while practically used and empirically superior valuation models are consistent in acyclical industries, they significantly differ in cyclical industries. Furthermore, the analysis in this master thesis highlights that analysts show the tendency to adopt different valuation models dependent on the actual cycle phase.

More books from GRIN Publishing

Cover of the book The Business of European Football by Konrad Leithäuser
Cover of the book The role of mission and its position within the strategic management process by Konrad Leithäuser
Cover of the book How to survive the skies over Europe - European lowcost carriers by Konrad Leithäuser
Cover of the book Das Verständnis der Liebe in den Johannesbriefen by Konrad Leithäuser
Cover of the book Edgar Allan Poe - The Murders in the Rue Morgue - A Tale of Ratiocination and the Prototype for Detective Stories by Konrad Leithäuser
Cover of the book Petrus Damiani als Repräsentant der frühen Kirchenreform - mit einem Rekurs auf den Begriff der Simonie by Konrad Leithäuser
Cover of the book How World War 1 changed the lives of canadian women by Konrad Leithäuser
Cover of the book Die konstitutionelle italienische Demokratie by Konrad Leithäuser
Cover of the book Trade Unions and Non-Standard Forms of Work: A Shifting Modus Operandi by Konrad Leithäuser
Cover of the book Benjamin Franklin's Autobiography. The work of a selfish man? by Konrad Leithäuser
Cover of the book How many mutations are required to produce a human cancer cell? by Konrad Leithäuser
Cover of the book Aspects of Sexuality in Vita Sackville-West's Life and Writing by Konrad Leithäuser
Cover of the book Sound or silence, loss or gain? by Konrad Leithäuser
Cover of the book Foreign Market Servicing Decision - Beiersdorf on the Russian market. by Konrad Leithäuser
Cover of the book Die Auswirkungen der Unternehmensteuerreform 2008 auf kleine und mittlere Unternehmen by Konrad Leithäuser
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy