A Note on a Framework for Valuation Ratios Based on Fundamentals

• 成果类型: Article
• 署名作者: Lai, Cheng
• 署名单位: Zhejiang University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12596
• 发表日期: 2020
• 页码: 2213-2223
• 关键词: equity valuation; residual income; cash flow; GROWTH; models; car

摘要

Valuation ratios divide stock price by accounting metrics such as earnings, earnings growth, and book value. This study adapts the general valuation framework in Ohlson and Juettner-Nauroth (2005) and Ohlson (2005) to present a unified approach for developing valuation ratios based on fundamentals, referred to as fundamental valuation ratios. One starts with a valuation model that is driven by an accounting metricaand its abnormal growth, then divides the valuation model byato get a fundamental valuation ratio. For any valuation ratio, one can find a corresponding fundamental valuation ratio, as long as the valuation model is based on the same metricaas the valuation ratio denominator.