The Effectiveness of Fundamentally-Adjusted Price-to-Sales Multiple in Stock Valuation: The Case of Warsaw Stock Exchange

Welc, Jacek

doi:10.2139/ssrn.1534868

Cited by 1 publication

(2 citation statements)

References 19 publications

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“…To suggest more objective investment recommendation, investors can use more accounting indicators. Taking into account the principle of the historical model, these results are similar to results of some cited analyses, mainly Yao (2004) and Welc (2010).…”

Section: Discussionsupporting

confidence: 88%

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The Use of Indicators in Modified Historical Model to Estimate the Intrinsic Value of a Stock

Gottwald¹

2012

JOC

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The article mentions several methods of a fundamental analysis used to value stocks. It primarily focuses on the historical model. This model enables undervalued, correctly valued and overvalued stocks to be identified. The model is further modified in the article, using selected accounting indicators. The modified model versions are applied to selected stocks in the SPAD segment, Prague Stock Exchange, within the 2005-2010 period. Empirical analysis is applied to a comparison of accuracy of the accounting indicator value estimates and accuracy of stock intrinsic value estimates, both separately for each stock and accounting indicator. The comparisons of accuracy of the accounting indicator value estimates and the accuracy of the stock intrinsic value estimates are also done based on the length of applied time period. With respect to the obvious fierce competition between stock issuers within the financial markets, the model enables potential investors, who are to select from an extensive offer of stocks, to make better informed investment decisions.

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Section: Discussionsupporting

confidence: 88%

“…Historical model is, similarly like other models, sometimes used in empirical analyses to estimate the intrinsic value of a stock. Analyzing stocks from the Warsaw Stock Exchange in the period 1999-2008, Welc (2010 uses historical model. Using price to sales indicator, he creates portfolios based upon undervaluation and overvaluation.…”

Section: Literary Surveymentioning

confidence: 99%

The Use of Indicators in Modified Historical Model to Estimate the Intrinsic Value of a Stock

Gottwald¹

2012

JOC

View full text Add to dashboard Cite

show abstract

The Effectiveness of Fundamentally-Adjusted Price-to-Sales Multiple in Stock Valuation: The Case of Warsaw Stock Exchange

Cited by 1 publication

References 19 publications

The Use of Indicators in Modified Historical Model to Estimate the Intrinsic Value of a Stock

The Use of Indicators in Modified Historical Model to Estimate the Intrinsic Value of a Stock

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