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On Comparing Residual Income and Discounted Cash Flow Models of Equity Valuation: A Response to Penman 2001 (CAR, Winter 2001)

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  • Russell J. Lundholm
  • Terrence B. O'Keefe

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  • Russell J. Lundholm & Terrence B. O'Keefe, 2001. "On Comparing Residual Income and Discounted Cash Flow Models of Equity Valuation: A Response to Penman 2001 (CAR, Winter 2001)," Contemporary Accounting Research, John Wiley & Sons, vol. 18(4), pages 693-696, December.
    • Handle: RePEc:wly:coacre:v:18:y:2001:i:4:p:693-696
    DOI: 10.1506/Y51R-C3YF-MT0T-BWE2
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    References listed on IDEAS

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    1. Stephen H. Penman, 2001. "On Comparing Cash Flow and Accrual Accounting Models for Use in Equity Valuation: A Response to Lundholm and O'Keefe (CAR, Summer 2001)," Contemporary Accounting Research, John Wiley & Sons, vol. 18(4), pages 681-692, December.
    2. Stephen H. Penman & Theodore Sougiannis, 1998. "A Comparison of Dividend, Cash Flow, and Earnings Approaches to Equity Valuation," Contemporary Accounting Research, John Wiley & Sons, vol. 15(3), pages 343-383, September.
    3. Russell Lundholm & Terry O'Keefe, 2001. "Reconciling Value Estimates from the Discounted Cash Flow Model and the Residual Income Model," Contemporary Accounting Research, John Wiley & Sons, vol. 18(2), pages 311-335, June.
    4. Francis, J & Olsson, P & Oswald, DR, 2000. "Comparing the accuracy and explainability of dividend, free cash flow, and abnormal earnings equity value estimates," Journal of Accounting Research, Wiley Blackwell, vol. 38(1), pages 45-70.
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    Cited by:

    1. Fernandez, Pablo, 2003. "Three residual income valuation methods and discounted cash flow valuation," IESE Research Papers D/487, IESE Business School.
    2. Philip Brown & Gerry Gallery & Olivia Goei, 2006. "Does market misvaluation help explain share market long‐run underperformance following a seasoned equity issue?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(2), pages 191-219, June.
    3. Gordon Richardson & Surjit Tinaikar, 2004. "Accounting based valuation models: what have we learned?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 44(2), pages 223-255, July.
    4. Cheng Lai, 2020. "A Note on a Framework for Valuation Ratios Based on Fundamentals," Contemporary Accounting Research, John Wiley & Sons, vol. 37(4), pages 2213-2223, December.
    5. Echterling, F. & Eierle, B. & Ketterer, S., 2015. "A review of the literature on methods of computing the implied cost of capital," International Review of Financial Analysis, Elsevier, vol. 42(C), pages 235-252.
    6. Kuo, Chen-Yin, 2016. "Does the vector error correction model perform better than others in forecasting stock price? An application of residual income valuation theory," Economic Modelling, Elsevier, vol. 52(PB), pages 772-789.

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