Essays about: "Residual Income Valuation Model RIV"

Showing result 1 - 5 of 13 essays containing the words Residual Income Valuation Model RIV.

  1. 1. The Other Side of Equity Valuation: Unlock The Power of Expectations-Based Investing with a Reverse-Engineered Valuation Model

    University essay from Handelshögskolan i Stockholm/Institutionen för marknadsföring och strategi

    Author : Lucas Nilsson; Isabelle Persson; [2023]
    Keywords : Corporate Valuation; Expectations-Based Investing; Residual Income Valuation Model; Return on Equity; Reverse-Engineered Valuation;

    Abstract : Corporate valuations models have extensive use in practice and are cornerstones in the academic setting of finance. Traditional valuation models have the function to calculate the intrinsic value of a company on the basis of the forecasted performance of a company. READ MORE

  3. 2. The pricing accuracy of the unbiased RIV model

    University essay from Handelshögskolan i Stockholm/Institutionen för redovisning och finansiering

    Author : Jonny Jin; Daniel Klingberg; [2023]
    Keywords : Pricing accuracy; Residual income valuation; Unbiased accounting; Accounting measurement bias; Conservative accounting;

    Abstract : This paper aims to investigate whether the pricing accuracy of the RIV model is improved with unbiased accounting. The introduction of the Feltham-Ohlson model has left researchers with an eagerness to propose a RIV model with high pricing accuracy. READ MORE

  4. 3. Accounting for the Measurement Bias: A Study of Market Efficiency in the United States and the Relevance of Extensive Fundamental Analysis in Equity Valuation

    University essay from Handelshögskolan i Stockholm/Institutionen för redovisning och finansiering

    Author : Erik Bergmark; Hugo Freudenthal; [2023]
    Keywords : Accounting valuation bias; Fundamental analysis; Horizon Value; Market mispricing; Residual income valuation;

    Abstract : This thesis investigates abnormal returns over the period 1983-2021 from an investment strategy that is based on public accounting information. Investment positions are taken in US manufacturing firms and are held for 36 months using a self-financing (hedged) portfolio. READ MORE

  5. 4. Profit Expectations of Startups in the Nordics

    University essay from Handelshögskolan i Stockholm/Institutionen för redovisning och finansiering

    Author : Ian Clark; Junehee Han; [2020]
    Keywords : Fundamental valuation; implied return on equity; profit expectations; residual income valuation; startups;

    Abstract : This paper investigates the reasonableness of the expected returns on equity for startups in the Nordics. With a sample of 109 companies listed in Sweden, Norway, Finland, and Denmark, we deduce the market's expected profitability represented by the implied return on equity from a Residual Income Valuation (RIV) model through reverse engineering. READ MORE

  6. 5. Solving the Valuation Paradox - Applying Hedonic Valuation to Paradoxical Companies

    University essay from Handelshögskolan i Stockholm/Institutionen för redovisning och finansiering

    Author : Barbora Gajarova; Xurui Qin; [2019]
    Keywords : equity valuation; paradoxical company; hedonic regression; residual income valuation RIV model; pricing errors;

    Abstract : Traditional valuation models that are widely used by investors and scholars, for instance, residual income valuation (RIV) model, do not yield accurate results when valuing paradoxical companies, i.e. companies with the market value significantly above the book value and high growth, despite not generating positive payoffs. READ MORE