search query: @author Richter, F. / total: 11
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| Author: | Herrmann, V. Richter, F. |
| Title: | Pricing with performance-controlled multiples |
| Journal: | Schmalenbach Business Review
2003 : JUL, VOL. 55:3, p. 194-219 |
| Index terms: | Investments Asset valuation Discounted cash flow Performance appraisal |
| Language: | eng |
| Abstract: | The authors test an approach for estimating the potential price of as yet untraded equity investments. The innovative aspect of this approach is that the authors use specific control factors, which they identify on the basis of a simplified valuation model. They investigate the accuracy of their approach by using a multi-year sample of American and European firms. The empirical results suggest that a selection of comparable assets based on control factors is superior to a selection based on SIC industry codes. The study also offers some guidance on the reliability of different bases of reference and on diverse methods of estimating multiples from comparable sets. |
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