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 Macro economic issues of offshore outsourcing by Konrad Leithäuser
Cover of the book Too Big To Fail - Concepetual Disputation with Leopold Kohr by Konrad Leithäuser
Cover of the book Do political parties still have a role to play in American elections? by Konrad Leithäuser
Cover of the book The disposable paper business sector in relation to market segmentation by Konrad Leithäuser
Cover of the book Decreasing the phobia of English in secondary level education by Konrad Leithäuser
Cover of the book Doing Business with the Japanese! by Konrad Leithäuser
Cover of the book Ethics and Airbus by Konrad Leithäuser
Cover of the book Consider how international institutions can help in the protection of human rights by Konrad Leithäuser
Cover of the book Language and Society - The nature of sociolinguistic perception. Language Variation and Change by Konrad Leithäuser
Cover of the book Unilever Case Study by Konrad Leithäuser
Cover of the book AfD and PEGIDA.Origins, threats and solutions by Konrad Leithäuser
Cover of the book Positive and Negative Impacts associated with Non-Consumptive Wildlife Tourism by Konrad Leithäuser
Cover of the book A Comprehensive Overview of Criteria Defining a Third-World-Country and an Exemplification of the Development of AIDS in the Sub-Saharan African State of Zambia by Konrad Leithäuser
Cover of the book Body Image in 'Emily of New Moon' with Reference to the Stages of her Cognitive and Physical Development in Middle Childhood and Early Adolescence (9-13 Years) by Konrad Leithäuser
Cover of the book Is the American Dream for Anybody? 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