Choosing Valuation Models in the UAE
Khaled Aljifri () and
Hafiz Imtiaz Ahmad
Additional contact information
Khaled Aljifri: United Arab Emirates University
A chapter in ICT for a Better Life and a Better World, 2019, pp 191-203 from Springer
Abstract:
Abstract This study aims to empirically examine the valuation models used by UAE investment analysts. A questionnaire and interviews were used to answer its research questions. Thirty-five investment analysts, in cooperation with the CFA Society Emirates, participated in the questionnaire. The sample covered most of the analysts who have professional qualifications such as CFA and CAIA (coupled with an academic degree such as the MBA) and have an average of more than eight years of experience in the relevant sectors. Descriptive and comparative analysis was employed in this study. The results reveal that discounted cash flow and P/E ratios are the most preferred valuation methods used by these analysts. For the accounting variables used in this study, the analysts perceived free cash flow and operating cash flow to be the most important variables. The results also show that the analysts perceive the solvency ratios (i.e., gearing ratio and interest cover) and liquidity ratio to be the most important ratios. The study concludes that the analysts in the UAE use both sophisticated valuation models and unsophisticated valuations models, with a preference for cash flow models.
Keywords: Financial analysts; Valuation models; Cash flow models; UAE (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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:spr:lnichp:978-3-030-10737-6_13
Ordering information: This item can be ordered from
http://www.springer.com/9783030107376
DOI: 10.1007/978-3-030-10737-6_13
Access Statistics for this chapter
More chapters in Lecture Notes in Information Systems and Organization from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().