Industry Leader Premium

Ja Ryong Kim
Additional contact information
Ja Ryong Kim: PhD, University of Nottingham, UK

European Journal of Multidisciplinary Studies Articles, 2019, vol. 4

Abstract: The advantage of becoming an industry leader is widely studied. However, how can we measure it? This paper measures how much premium an industry leader has in its valuation through a P/E ratio. The findings suggest industry leaders have significantly higher P/E ratios by 0.65 than their peers. The analysis of earnings forecasts suggests this is not due to their high earnings growth potentials but from other sources. However, in stock recommendations, the premium is not recognised by analysts but interpreted as the sign of over-valuation. The paper contributes the new structure of a P/E ratio by identifying the industry leader premium.

Keywords: industry; leader; premium; price-earnings; valuation (search for similar items in EconPapers)
Date: 2019
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://brucol.be/index.php/ejms/article/view/6098 (text/html)
https://brucol.be/files/articles/ejms_v4_i2_19/Kim.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eur:ejmsjr:451

DOI: 10.26417/ejms-2019.v4i2-542

Access Statistics for this article

More articles in European Journal of Multidisciplinary Studies Articles from Revistia Research and Publishing
Bibliographic data for series maintained by Revistia Research and Publishing ().