Abstract
In this chapter we focus on multiples’ performance in the US stock market. The main aim is to examine the effectiveness of a broad selection of commonly used multiples and to understand if a specific multiple exists that is able to outperform the others. In doing so we are able to widen the comprehensive understanding on “market performances” of the tools practitioners are handling in their everyday work. In addition, a relevant feature of our work is that we are able to provide a detailed ranking across industries of the metrics performances, from which we can detect which sector or industry presents better or worse performance in terms of multiples accuracy in predicting the market price.
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Rossi, E., Forte, G. (2016). Accuracy Performance of Relative Valuation. In: Assessing Relative Valuation in Equity Markets. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-56335-4_4
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DOI: https://doi.org/10.1057/978-1-137-56335-4_4
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