Equity valuation using accounting numbers on Internet and IT Service Firms

Detalhes bibliográficos
Autor(a) principal: Amaral, Nicole Torres
Data de Publicação: 2017
Tipo de documento: Dissertação
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.14/21861
Resumo: The development of the new economy and establishment of Internet-based companies created an industry of fast growing corporations with much interest to investors. The valuation of these firms has drifted away from estimates provided by traditional valuation models, which tend to undervalue Internet stocks consistently. Additionally, financial information has shown to be of little use when assessing the value of dot.com stocks (Trueman et al., 2001) The objective of this paper is to shed some light on the usefulness of accounting-based valuation models when valuing Internet stocks. It attempts to provide users with a guide to the relative performance of models when valuing Internet companies and demonstrate how the assessment of these companies is compared to the valuation of firms in other industries. Empirical results show that Internet and IT Service companies are harder to value, compared to other firms, using traditional valuation methods. The valuation model that provides the best estimates for these enterprises is the forward P/E calculated using a harmonic mean when compared to the RIVM and AEGM. Results also show that analysts prefer stock-based valuation models to flow-based models.
id RCAP_5afa8d6823f4bbb127e97a0f368c70d2
oai_identifier_str oai:repositorio.ucp.pt:10400.14/21861
network_acronym_str RCAP
network_name_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository_id_str 7160
spelling Equity valuation using accounting numbers on Internet and IT Service FirmsDomínio/Área Científica::Ciências Sociais::Economia e GestãoThe development of the new economy and establishment of Internet-based companies created an industry of fast growing corporations with much interest to investors. The valuation of these firms has drifted away from estimates provided by traditional valuation models, which tend to undervalue Internet stocks consistently. Additionally, financial information has shown to be of little use when assessing the value of dot.com stocks (Trueman et al., 2001) The objective of this paper is to shed some light on the usefulness of accounting-based valuation models when valuing Internet stocks. It attempts to provide users with a guide to the relative performance of models when valuing Internet companies and demonstrate how the assessment of these companies is compared to the valuation of firms in other industries. Empirical results show that Internet and IT Service companies are harder to value, compared to other firms, using traditional valuation methods. The valuation model that provides the best estimates for these enterprises is the forward P/E calculated using a harmonic mean when compared to the RIVM and AEGM. Results also show that analysts prefer stock-based valuation models to flow-based models.O desenvolvimento da nova economia e das empresas cujo negócio é realizado através da Internet deu aso à criação de uma industria de empresas com um crescimento extremamente acelerado de grande interesse para possíveis investidores. A avaliação de empresas ligadas á Internet afastou-se das estimativas que eram geradas usando os modelos tradicionais de avaliação de empresas, que a maioria das vezes subvalorizava consideravelmente as acções destas firmas. Adicionalmente, a informação financeira divulgada mostrou ser pouco útil para a avaliação das acções dot.com (Trueman et al., 2001). O objective principal desta tese é identificar a utilidade dos modelos de avaliação baseados em relatórios financeiros na avaliação de empresas online. O intuito é facultar aos analistas um guia sobre a capacidade de estimação de alguns modelos na avaliação de empresas tecnológicas e comparar a precisão das estimativas para estas empresas com as estimativas do valor de outras empresas de diferentes indústrias. Os resultados desta análise demonstram que as empresas tecnológicas são mais difíceis de estimar usando os modelos estudados. O P/E é identificado como o modelo que produz as melhores avaliações para estas empresas em comparação com o RIVM e o AEGM. Os restados também mostram que os analistas preferem modelos que utilização informação relativa a empresas concorrentes versus os modelos que utilização as demonstrações de resultados das empresas.Guedes, José Filipe Garcia CorrêaVeritati - Repositório Institucional da Universidade Católica PortuguesaAmaral, Nicole Torres2017-03-20T15:52:30Z2017-02-1620172017-02-16T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/21861TID:201647664enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:28:00Zoai:repositorio.ucp.pt:10400.14/21861Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:18:11.515308Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Equity valuation using accounting numbers on Internet and IT Service Firms
title Equity valuation using accounting numbers on Internet and IT Service Firms
spellingShingle Equity valuation using accounting numbers on Internet and IT Service Firms
Amaral, Nicole Torres
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
title_short Equity valuation using accounting numbers on Internet and IT Service Firms
title_full Equity valuation using accounting numbers on Internet and IT Service Firms
title_fullStr Equity valuation using accounting numbers on Internet and IT Service Firms
title_full_unstemmed Equity valuation using accounting numbers on Internet and IT Service Firms
title_sort Equity valuation using accounting numbers on Internet and IT Service Firms
author Amaral, Nicole Torres
author_facet Amaral, Nicole Torres
author_role author
dc.contributor.none.fl_str_mv Guedes, José Filipe Garcia Corrêa
Veritati - Repositório Institucional da Universidade Católica Portuguesa
dc.contributor.author.fl_str_mv Amaral, Nicole Torres
dc.subject.por.fl_str_mv Domínio/Área Científica::Ciências Sociais::Economia e Gestão
topic Domínio/Área Científica::Ciências Sociais::Economia e Gestão
description The development of the new economy and establishment of Internet-based companies created an industry of fast growing corporations with much interest to investors. The valuation of these firms has drifted away from estimates provided by traditional valuation models, which tend to undervalue Internet stocks consistently. Additionally, financial information has shown to be of little use when assessing the value of dot.com stocks (Trueman et al., 2001) The objective of this paper is to shed some light on the usefulness of accounting-based valuation models when valuing Internet stocks. It attempts to provide users with a guide to the relative performance of models when valuing Internet companies and demonstrate how the assessment of these companies is compared to the valuation of firms in other industries. Empirical results show that Internet and IT Service companies are harder to value, compared to other firms, using traditional valuation methods. The valuation model that provides the best estimates for these enterprises is the forward P/E calculated using a harmonic mean when compared to the RIVM and AEGM. Results also show that analysts prefer stock-based valuation models to flow-based models.
publishDate 2017
dc.date.none.fl_str_mv 2017-03-20T15:52:30Z
2017-02-16
2017
2017-02-16T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.14/21861
TID:201647664
url http://hdl.handle.net/10400.14/21861
identifier_str_mv TID:201647664
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
_version_ 1799131870829477888