Valuation of Selected Indian Stocks using Discounted Cash Flow Techniques
AbstractThe present paper aims at using a valuation model based on Discounted Cash Flow Method. Quarterly intrinsic values for the year 2010 are calculated by this model. The calculated Intrinsic values are compared with the corresponding market values in order to know whether the model is capable enough to capture the market price or not. Welch’s t-test is conducted to check the significance level between the two values and robustness of the model. Selected “A” category companies are taken for the study and the time period of the study is from 1st January, 2001 to 31st December, 2010.
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Bibliographic InfoArticle provided by Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest in its journal Knowledge Horizons - Economics.
Volume (Year): 5 (2013)
Issue (Month): 4 (December)
Equity Free Cash Flow; Fundamental value; Market value; Discounted Cash Flow; Equity stock;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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