RT Journal Article
SR Electronic
T1 Determinants of Relative Valuation in Different Industry Sectors—<em>An Empirical Study</em>
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 73
OP 85
DO 10.3905/jwm.2019.22.1.073
VO 22
IS 1
A1 B. Rajesh Kumar
YR 2019
UL https://pm-research.com/content/22/1/73.abstract
AB This article aims to determine the fundamental drivers of various relative valuation multiples in different industry sectors. It is based on a sample of 189 companies in seven industry sectors. Through regression analysis, the study identifies the determinant variables for the most widely used earnings, revenue, and book value multiples: P/E ratios, enterprise value to EBITDA multiple and price to book multiple. Additionally, we find that dividend payouts have different effects on valuation multiples in different sectors.TOPICS: Fundamental equity analysis, statistical methods