Relative Valuation with Equity and Value Multiples

Paskalis Glabadanidis

Chapter 3 in Absence of Arbitrage Valuation, 2014, pp 29-35 from Palgrave Macmillan

Abstract: Abstract In theory, the current equity value-to-dividend ratio is obtained by taking the single-stage dividend growth model value of equity per share today, V 0 E , and dividing it by the current dividend per share, D0: 3.1 V 0 E D 0 = ( 1 + g ) r e − g , ]] D 0 V 0 E = r e − g ( 1 + g ) , ]] V 0 E D 1 = 1 r e − g , ]] D 1 V 0 E = r e − g . ]]

Keywords: Dividend Yield; Dividend Payout; Payout Ratio; Positive Earning; Expect Growth Rate (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-37287-1_3

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DOI: 10.1057/9781137372871_3

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