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Preferred Valuation Techniques in the UAE: A Comparative Study of Financial and Nonfinancial Sectors

Author

Listed:
  • Khaled Aljifri

    (United Arab Emirates University, Al Ain, UAE,)

  • Hafiz Imtiaz Ahmad

    (Higher Colleges of Technology, Al Ain, UAE)

Abstract

This study examines empirically the preferred valuation techniques used by UAE investment analysts in the financial and non-financial sectors. The study uses a questionnaire and interviews to address its ten research questions. Descriptive and nonparametric statistics were employed in this study. The results reveal that discounted cash flow and price earnings are the most preferred valuation techniques used by the analysts in the financial sector. On the other hand, the results show that the analysts in the non-financial sector prefer using EV/EBITDA and discounted cash flow techniques. The study concludes that the analysts in the two sectors use both sophisticated valuation techniques and unsophisticated valuations techniques, with a preference for cash flow techniques in the financial sector and a preference for accrual-based techniques in the non-financial sector.

Suggested Citation

  • Khaled Aljifri & Hafiz Imtiaz Ahmad, 2019. "Preferred Valuation Techniques in the UAE: A Comparative Study of Financial and Nonfinancial Sectors," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 51-59.
    • Handle: RePEc:eco:journ1:2019-01-7
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial Analysts; Valuation Techniques; Cash Flow Techniques;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G2 - Financial Economics - - Financial Institutions and Services

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