Analysts' Earnings Forecasts and Equity Valuations PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Analysts' Earnings Forecasts and Equity Valuations PDF full book. Access full book title Analysts' Earnings Forecasts and Equity Valuations by Nikolaos Panigirtzoglou. Download full books in PDF and EPUB format.
Author: Nikolaos Panigirtzoglou
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Get Book Here
Book Description
Equity valuations are important for monetary policy makers as the factors that drive equity valuations may contain information about the future course of the economy. Moreover, a possible correction in equity prices may be a source of shocks to which monetary policy may have to react. Such an equity market correction may also have negative implications for financial stability. We use a three-stage dividend discount model to see whether analysts' forecasts can explain the level of equity prices over the past ten years. This model is also used to decompose equity returns into changes to earnings, the yield curve and equity risk premia.
Author: Nikolaos Panigirtzoglou
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Get Book Here
Book Description
Equity valuations are important for monetary policy makers as the factors that drive equity valuations may contain information about the future course of the economy. Moreover, a possible correction in equity prices may be a source of shocks to which monetary policy may have to react. Such an equity market correction may also have negative implications for financial stability. We use a three-stage dividend discount model to see whether analysts' forecasts can explain the level of equity prices over the past ten years. This model is also used to decompose equity returns into changes to earnings, the yield curve and equity risk premia.
Author: Steven Alan Sharpe
Publisher:
ISBN:
Category : Stock price forecasting
Languages : en
Pages : 58
Get Book Here
Book Description
Author: Sundaresh Ramnath
Publisher: Now Publishers Inc
ISBN: 1601981627
Category : Business & Economics
Languages : en
Pages : 125
Get Book Here
Book Description
Financial Analysts' Forecasts and Stock Recommendations reviews research related to the role of financial analysts in the allocation of resources in capital markets. The authors provide an organized look at the literature, with particular attention to important questions that remain open for further research. They focus research related to analysts' decision processes and the usefulness of their forecasts and stock recommendations. Some of the major surveys were published in the early 1990's and since then no less than 250 papers related to financial analysts have appeared in the nine major research journals that we used to launch our review of the literature. The research has evolved from descriptions of the statistical properties of analysts' forecasts to investigations of the incentives and decision processes that give rise to those properties. However, in spite of this broader focus, much of analysts' decision processes and the market's mechanism of drawing a useful consensus from the combination of individual analysts' decisions remain hidden in a black box. What do we know about the relevant valuation metrics and the mechanism by which analysts and investors translate forecasts into present equity values? What do we know about the heuristics relied upon by analysts and the market and the appropriateness of their use? Financial Analysts' Forecasts and Stock Recommendations examines these and other questions and concludes by highlighting area for future research.
Author: Mark T. Bradshaw
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 680
Get Book Here
Book Description
Author: Brian R. Bruce
Publisher: Irwin Professional Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 398
Get Book Here
Book Description
Author: Mark T. Bradshaw
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
Get Book Here
Book Description
Sell-side analysts summarize their opinions about stocks with earnings forecasts and stock recommendations. Because earnings forecasts reflect future fundamentals, and future fundamentals determine value, forecasts and recommendations should be related. In this paper, I test for evidence of such a relation. Using analysts' earnings forecasts in conjunction with the residual income valuation model, I generate intrinsic value estimates for a comprehensive range of plausible calibrations of the model parameters. I find that analysts' stock recommendations are generally unrelated to the deviation of intrinsic value estimates from trading prices. Extending this analysis to consider value estimates generated by a valuation heuristic documented in prior research, I find the heuristic valuations to be strongly related to analysts' stock recommendations. Taken together, the evidence suggests that analysts incorporate their earnings forecasts into their recommendations in a manner consistent with earnings-based heuristics rather than a discounted present value valuation model. The evidence presented here for the behavior of analysts is consistent with prior evidence showing over-extrapolation of growth and earnings persistence in stock prices.
Author: Daniel Kreutzmann
Publisher: Logos Verlag Berlin GmbH
ISBN: 3832525297
Category : Business & Economics
Languages : en
Pages : 141
Get Book Here
Book Description
This thesis focuses on the three primitive value drivers of each company valuation model that is based on fundamental analysis: the discount rate, the expected future payoffs during the explicit forecasting period, and the terminal value at the end of the explicit forecasting period. While the first factor is analyzed theoretically by incorporating the government into the classical valuation framework, this thesis studies the other two factors by investigating forecasts made by professional investors, i.e. financial analysts. In the first part we show that the government's and the shareholders discount rate usually differ and analyze how the government's and shareholders different objectives lead to conflicts in the context of capital budgeting. The empirical part of this thesis shows that macroeconomic information is frequently used by financial analysts when updating their earnings expecations and that target price forecastsmade by financial analysts can be used to predict abnormal returns.
Author: Takashi Yaekura
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
Get Book Here
Book Description
We evaluate the extent to ...
Author: Ran Barniv
Publisher:
ISBN:
Category :
Languages : en
Pages : 41
Get Book Here
Book Description
From 1994 to 1998, Bradshaw (2004) finds that analysts' stock recommendations relate negatively to residual income valuation estimates but positively to valuation heuristics based on the price-to-earnings-to-growth ratio and long-term growth. These results are surprising, especially considering that future returns relate positively to residual income valuation estimates and negatively to heuristics. Using a large sample of analysts for the 1993-2005 period, we consider whether recent regulatory reforms affect this apparent inconsistent analyst behavior. Consistent with the intent of these reforms, we find that the negative relation between analysts' stock recommendations and residual income valuations is diminishing following regulations. We also show that residual income valuations, developed using analysts' earnings forecasts, relate more positively with future returns. However, we document that stock recommendations continue to relate negatively with future returns. We conclude that recent regulations have affected analysts' outputs - forecasted earnings and stock recommendations - but investors should be aware that factors other than identifying mispriced stocks continue to influence how analysts recommend stocks.
Author: Lawrence D. Brown
Publisher:
ISBN:
Category :
Languages : en
Pages : 6
Get Book Here
Book Description
