IDEAS home Printed from https://ideas.repec.org/a/ids/ijepee/v14y2021i1p39-65.html
   My bibliography  Save this article

Emerging market stock valuation: new evidence from Peru

Author

Listed:
  • Pablo José Arana Barbier
  • Kurt Johnny Burneo Farfán

Abstract

There is still a debate regarding which valuation multiples can estimate the price of a stock. Nevertheless, recent research has not considered previous relevant findings and authors are still in an 'exploratory' phase that targets multiples randomly, without analysing intentionally developed and emerging markets separately. The purpose of the investigation is to determine how strongly do the valuation multiples preferred by the literature all around the world explain the price of the stocks in emerging countries such as Peru, through panel data multiple linear regression models. Specific delimitations based on the literature are considered. Results show that: a) the model composed by valuation multiples from different emerging markets studies correlates strongly with the stock price throughout 20 years of analysis; b) the model can be reduced to a very short but statistically solvent expression; c) the commodity-related business is introduced as a novel explanatory variable.

Suggested Citation

  • Pablo José Arana Barbier & Kurt Johnny Burneo Farfán, 2021. "Emerging market stock valuation: new evidence from Peru," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 14(1), pages 39-65.
    • Handle: RePEc:ids:ijepee:v:14:y:2021:i:1:p:39-65
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=111949
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijepee:v:14:y:2021:i:1:p:39-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=219 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.