Abstract: The value of a company can be estimated several ways, including direct valuation and relative valuation. Direct valuation has the advantage of being independent of market forces. Among the direct valuation models, the residual income model is intuitive and easy to apply, and evidence indicates that it is applicable to global markets. Relative valuation is simple to apply; furthermore, it captures market sentiment. The key to relative valuation is to control for the primary drivers of the multiple and to choose the right multiple, especially when applying it to global markets.
Publication Year: 2006
Publication Date: 2006-03-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot