Relative Performance of Valuation Using Multiples. Empirical Evidence on Bucharest Stock Exchange
Dragos Ioan Mînjina
Additional contact information
Dragos Ioan Mînjina: Academia de Studii Economice / Facultatea de Finante, Asigurari, Banci si Burse de Valori
The Review of Finance and Banking, 2009, vol. 01, issue 1, pages 035-053
This paper examines the valuation performances of seven multiples on a sample of BSE-listed firms. When industry membership is used as the selection method for comparable firms, the P/CF multiple leads to the best valuation performance. P/E, P/B, P/CF and P/TA multiples assure the highest accuracies when ROE is used as the selection method for comparable firms. In the case of both selection methods of comparables, the P/S multiple leads to the least accurate valuation. In this study, accuracy levels of multiple valuations are generally lower than those obtained using the same methods on more developed capital markets.
Keywords: Selection method; capital markets (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://www.rfb.ase.ro/articole/RFB7.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:rfb:journl:v:01:y:2009:i:1:p:035-053
Access Statistics for this article
The Review of Finance and Banking is currently edited by Victor Dragota; Bogdan Negrea
More articles in The Review of Finance and Banking from Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante Strada Mihai Eminescu nr.13-15, sector 1, Bucuresti, Romania. Contact information at EDIRC.
Series data maintained by Tatu Lucian ().