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 Case study on Debenhams Plc and Leadership by Konrad Leithäuser
Cover of the book The role of upward feedback in effective Federal public administration in Germany - as part of the new public management and modernisation strategy by Konrad Leithäuser
Cover of the book Trabajo infantil by Konrad Leithäuser
Cover of the book The History Of the English Garden by Konrad Leithäuser
Cover of the book Never-Ending Pixie Dust. A Critical Analysis of Motherhood and Its Complexities in 'Peter Pan' by Konrad Leithäuser
Cover of the book What parts of a start-up's business model are influenced by incubators? by Konrad Leithäuser
Cover of the book Transnational Political Practices of Turkish and Kurdish Organisations in Germany by Konrad Leithäuser
Cover of the book 'The History Man' and 'The Affair' by Konrad Leithäuser
Cover of the book Culture Therapy by Konrad Leithäuser
Cover of the book Religion and atheism in Douglas Adams' 'Hitchhiker's guide to the galaxy' by Konrad Leithäuser
Cover of the book Japan and its war-time past by Konrad Leithäuser
Cover of the book The voice of Al Qaeda by Konrad Leithäuser
Cover of the book Example-based Machine Translation by Konrad Leithäuser
Cover of the book IBM Pilot Head Office (Cosham, Hampshire, 1970-71) and IBM Technical Park (Greenford, Middlesex, 1975-1980) - Architecture as Part of the Market oriented Corporate Culture by Konrad Leithäuser
Cover of the book Chinefarge: A Sino-Western Joint Venture 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