ANALYSIS OF THE RESIDUAL INCOME VALUATION AND ABNORMAL EARNINGS GROWTH MODELS: A PRACTICAL APPROACH USING ANALYSTS’ FORECASTS
نویسندگان
چکیده
منابع مشابه
Reexamining Stock Valuation and Inflation: The Implications of Analysts’ Earnings Forecasts
This paper examines the effect of inflation on stock valuations and expected long-run returns. Ex ante estimates of expected long-run returns are constructed by incorporating analysts’ earnings forecasts into a variant of the Campbell-Shiller dividend-price ratio model. The negative relation between equity valuations and expected inflation is found to be the result of two effects: a rise in exp...
متن کاملOne-Year-Ahead Analysts’ Forecasts vs. the V/P Ratio: the Predictive Power of the Residual-Income-Based Valuation Model
This paper addresses the incremental effects of two anomalous variables: pricescaled one-year-ahead analysts’ early-in-the-year earnings forecasts from Elgers, Lo, and Pfeiffer (2001) and price-scaled implicit firm values from Frankel and Lee (1998), where implicit firm values are defined in a manner consistent with the Ohlson (1995) residual income model. Because analysts’ forecasts are input ...
متن کاملFollowing the Leader: A Study of Individual Analysts Earnings Forecasts
This paper develops and tests procedures for identifying lead analysts based on the timeliness of analyst forecast revisions, the trading levels associated with these revisions, and forecast accuracy. Our framework provides an objective assessment of analyst quality that differs from the standard approach that uses survey evidence to rate analysts. Using a sample of equity analysts, we find tha...
متن کاملA Comparison of Error Rates for EVA, Residual Income, GAAP-earnings, and Other Metrics Using a Long-Window Valuation Approach
Predictability and variability are two measures commonly used in the empirical literature to gauge the quality of earnings and hence, decision usefulness to investors. We adopt both measures to investigate empirically the relative quality of Stern Stewart’s measure of economic value added (EVA) compared to GAAP earnings, residual income, cash flows and other mandated metrics in the US and UK. W...
متن کاملWhy do Analysts Issue Long-term Earnings Growth Forecasts? An Empirical Analysis
We examine analysts’ motives to issue long-term earning growth (LTG) forecasts. We find that analysts are more likely to issue LTG forecasts when their incentive to please managers is strong. In addition, analysts are more likely to choose firms that they are more optimistic about for LTG coverage. We find mixed evidence regarding whether analysts issue LTG forecasts to signal their ability or ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Revista Contabilidade e Controladoria
سال: 2012
ISSN: 1984-6266
DOI: 10.5380/rcc.v4i1.26419