Accounting based valuation formulae

In this paper we integrate the PVED, FCF, RIV and AEG valuation models and argue that the AEG model is practically and theoretically superior to their correspondents. We show that a firm’s market price is a function of its expected earnings, short and long term growth in earnings and its cost of capital. We also comment on the empirical validity of the accounting based valuation models in Brazil.

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Year of publication:	2007
Authors:	Ohlson, James A. ; Lopes, Alexsandro Broedel
Published in:	Brazilian Business Review. - Fundação Instituto Capixaba de Pesquisas em Contabilidade, Economia e Finanças (FUCAPE). - Vol. 4.2007, 2, p. 95-102
Publisher:	Fundação Instituto Capixaba de Pesquisas em Contabilidade, Economia e Finanças (FUCAPE)
Subject:	accounting based valuation models \| PVED \| FCF \| RI \| AEG \| Brazil

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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