search query: @author Lee, C.M.C. / total: 5
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| Author: | Bhojraj, S. Lee, C.M.C. |
| Title: | Who is my peer? A valuation-based approach to the selection of comparable firms |
| Journal: | Journal of Accounting Research
2002 : MAY, VOL. 40:2, p. 407-439 |
| Index terms: | Equities Valuation |
| Freeterms: | Comparable companies |
| Language: | eng |
| Abstract: | A general approach for selecting comparable companies in market-based research and equity valuation is presented in this study. Valuation theory in the background, a "warranted multiple" is developed for each company and peer companies are identified as those having the closest warranted multiple. This approach is tested by examining the efficacy of the selected comparable companies in predicting future (one-to-three-year-ahead) enterprise-value-to-sales and price-to-book ratios. |
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