Adjusted-Book-Value Approach to Valuation

1990 ◽  
Vol 1990 (2) ◽  
pp. 31-37 ◽  
Author(s):  
David W. Nicholas
Keyword(s):  
Book Value

GLOBAL FINANCIAL CRISIS: THE BUBBLE EFFECT IN INDONESIA

2018 ◽  
pp. 27-33
Author(s):  
Mohammad Benny Alexandri ◽  
Raeny Dwisanti
Keyword(s):  
Financial Crisis ◽  
Stock Price ◽  
Price Index ◽  
Global Financial Crisis ◽  
Price Ratio ◽  
Sharp Decline ◽  
Book Value ◽  
The Us ◽  
Investment Opportunities ◽  
Us Financial Crisis

US and Indonesia stock markets are entering record heights without being offset by economic growthand profitability growth of their traded companies. There are several indicators for the stock marketbubble: (1) Price Ratio (Ear Ratio); (2) Price Ratio / Book (PB Ratio), the latter comparing thenominal price of one share at a market with the book value (the value of company's assets). Thecurrent PB ratio of the composite stock price index being 3.3 means that for each shares the assetvalue of which is 1 IDR, the stock would be worth 3.3 IDR. This is one of the most expensive price in the world today. Based on the above, for Indonesian stock market sharp decline is just a matter of time and waiting. This decline will be much sharper if triggered by the US financial crisis. We can also also see a bubble emerging from increasingly irrational investment attitudes. Currently, in addition to high prices for stocks and bonds, investors have started looking at investment opportunities in digital currencies. This research tries to know the potential of financial crisis and itseffect for the financial market in Indonesia. 

EFFICIENCY OF USE OF GREEN-TRANSPORT COMPONENTS BY OPERATING AND ENERGY INDICATORS

2019 ◽  
pp. 121-130
Author(s):  
D. Domushchi ◽  
P. Ustuyanov ◽  
Y. Enakiev ◽  
A. Lipin
Keyword(s):  
Winter Wheat ◽  
Weather Conditions ◽  
Energy Costs ◽  
Domestic Production ◽  
Book Value ◽  
Traditional Technology ◽  
Conventional Technology ◽  
Production Cycles ◽  
Energy Indicators ◽  
Harvesting Process

In agriculture, the components of production cycles are likely (stochastic) in nature. This is especially true for harvesting. The duration of this period depends on the weather conditions, the biology of plant development, the variety of culture, the composition of the soil, agro technical techniques, etc. In connection with this, there is a need for scientific and production searches for such forms of organization of the harvesting process that would allow harvesting in short agronomic terms and substantially reduce due to this loss. The purpose of the research is to substantiate the structure and composition of the technology of harvesting and transport complexes for different technologies of harvesting cereal crops by operational and energy indicators to reduce the material and energy costs of harvesting. To calculate the comparative estimation of energy costs of complex fuel and operating costs for different harvesting technologies of winter wheat, four technologies are considered: traditional technology - direct harvesting without straw shredding; traditional technology - separate harvesting; zero technology - the use of harvesting equipment of domestic production; Zero technology - the use of harvesting techniques imported production. For these technologies, according to the methodology of the latest scientific research, technological maps for the harvesting of winter wheat have been developed. A comparative analysis of operational and energy costs of harvesting winter wheat indicated that the least cost is zero technology using domestic production technology, and the most expensive is conventional technology with direct combine harvesting. The presented results of researches of various technologies of grain cereal harvesting according to the structure and composition of equipment of harvesting and transportation complexes indicated that reduction of operational and energy expenses is possible due to increase of productivity, reduction of book value and quantity of harvesting equipment in the composition of harvesting - transport complexes at performance of works in optimal agro technical terms with minimal crop losses.

PENGARUH RASIO KEUANGAN TERHADAP HARGA SAHAM PERUSAHAAN LQ45 PERIODE 2013-2017

2019 ◽  
Vol 5 (1) ◽  
pp. 1-17
Author(s):  
Nuri Maulana Ikhsan ◽  
Yohanes Rully Dermawan
Keyword(s):  
Stock Prices ◽  
Share Price ◽  
Financial Ratios ◽  
Total Asset ◽  
Current Ratio ◽  
Return On Equity ◽  
Book Value ◽  
Earnings Per Share ◽  
Asset Turnover ◽  
Equity Ratio

This study aims to determine the effect of financial ratios on stock prices. Financial ratios used in this study is the Current Ratio, Debt to Equity Ratio, Return On Equity, Total Asset Turnover, Earning Per Share, and Price to Book Value. The type of research used is quantitative to observe the effect of financial ratios on stock prices. This study used a purposive sampling method with a total sample of 20 companies registered in the LQ45 index for the period 2013-2017 and fulfilling the research criteria. The statistical method used is multiple linear regression analysis The results of this study indicate that partially, the variable debt to equity ratio, return on equity, total asset turnover, earnings per share, and price to book value have a significant partial effect on stock prices, while the current ratio variable does not have a partial significant effect on stock prices. Simultaneously the current ratio variable, debt to equity ratio, return on equity, total asset turnover, earnings per share, and price to book value have a significant simultaneous effect on stock prices. And the most dominant influential variable is earnings per share. Keywords:  Current Ratio, Debt to Equity Ratio, Return On Equity, Total Asset Turnover, Earning Per Share, Price to Book Value, and Stock Price.  

Implementing Residual Income Valuation With Linear Information Dynamics

1999 ◽  
Vol 74 (1) ◽  
pp. 1-28 ◽  
Author(s):  
James N. Myers
Keyword(s):  
Time Series ◽  
Firm Value ◽  
Residual Income ◽  
Accounting System ◽  
Information Dynamics ◽  
No Arbitrage ◽  
Book Value ◽  
Residual Income Valuation ◽  
Accounting Numbers ◽  
Linear Information

Residual income (RI) valuation is a method of estimating firm value based on expected future accounting numbers. This study documents the necessity of using linear information models (LIMs) of the time series of accounting numbers in valuation. I find that recent studies that make ad hoc modifications to the LIMs contain internal inconsistencies and violate the no arbitrage assumption. I outline a method for modifying the LIMs while preserving internal consistency. I also find that when estimated as a time series, the LIMs of Ohlson (1995), and Feltham and Ohlson (1995) provide value estimates no better than book value alone. By comparing the implied price coefficients to coefficients from a price level regression, I find that the models imply inefficient weightings on the accounting numbers. Furthermore, the median conservatism parameter of Feltham and Ohlson (1995) is significantly negative, contrary to the model's prediction, for even the most conservative firms. To explain these failures, I estimate a LIM from a more carefully modeled accounting system that provides two parameters of conservatism (the income parameter and the book value parameter). However, this model also fails to capture the true stochastic relationship among accounting variables. More complex models tend to provide noisier estimates of firm value than more parsimonious models.

scholarly journals Drivers of Firm’s Value: Panel Data Evidence from Indian Manufacturing Industry

2015 ◽  
Vol 7 (2) ◽  
pp. 1 ◽  
Author(s):  
Ranjit Tiwari ◽  
Brajesh Kumar
Keyword(s):  
Emerging Economies ◽  
Manufacturing Industry ◽  
Developing Economies ◽  
Panel Regression ◽  
Strategic Choices ◽  
Significant Relation ◽  
Value Drivers ◽  
Book Value ◽  
Earnings Per Share ◽  
The World

<p>The purpose of this paper is to classify the value drivers into broad categories and then identify the major drivers of firm’s value for Indian manufacturing industry and also work out the sectorial sensitivity of value drivers. To achieve the objectives of the study we first derive the value driver’s model next we use panel regression with different model specifications to empirically analyse the major drivers of firm’s value. Our study reveals that sales, net margin, book value, dividend per share, beta and earnings per share are the six major financial drivers of value. All the strategic drivers when included in the model have significant relation with value without disturbing the r-square of the model. Thus, it is clear that apart from generic financial drivers, firms need to put more attention on strategic choices they make, because it is the strategic choice that will give firms an edge over others in developing economies like India. Further, we also observe sector specific priorities of the value drivers. This paper provides academicians and practitioners with an overview of the applicability of value drivers for Indian manufacturing industry. Further, the study will fill the gap in literature by adding value drivers’ evidence from one of the fastest growing economies in the world and will benefit researchers in arriving at common consensus for value drivers in emerging economies. </p>

Explaining the Growth Potential of a Market Leader and Challenger: Evidence from Japan’s Telecommunications Services Industry

2021 ◽  
pp. 227853372198952
Author(s):  
Mostafa Saidur Rahim Khan ◽  
Naheed Rabbani
Keyword(s):  
High Growth ◽  
Growth Potential ◽  
Book Value ◽  
Good Investment ◽  
Growth Firms ◽  
Price Earnings Ratio ◽  
Equity Ratio ◽  
Market Leader ◽  
Services Industry ◽  
Telecommunications Services

This study examines the growth potential of the market leader and market challenger in Japan’s telecommunications services industry. We focus on Nippon Telegraph and Telephone Corporation (NTT) and KDDI, the market leader and challenger (respectively) in terms of sales revenue, total assets, and market share. Following finance literatures, we use higher values of price–earnings ratio (P/E) and market-to-book-value-of-equity ratio (MV/BV) as the indicators of growth potential. High growth firms have the potential to outperform the overall market over a significant period of time providing a good investment opportunity for retail and institutional investors. This study uses financial data of the NTT and KDDI from the period between 2001 and 2016 and applies several regression models to examine the growth potential of the market leader and market challenger in Japan’s telecommunications services industry. Using the P/E and MV/BV as indicators of growth potential, we show that the market challenger’s growth potential is significantly higher than that of the market leader, even after controlling for firm size, liquidity, profitability, leverage, cash flow, and age.

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