IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Valuation accuracy and infinity horizon forecasts

  • Lucio Cassia
  • Silvio Vismara
Registered author(s):

    This paper focuses on the assumptions of infinite-horizon forecasting in the field of firm valuation. The estimate of long-run continuing values is based on the hypothesis that companies should have reached the steady-state at the end of the period of explicit forecasts, i.e. due to competition forces any eventual source of extra profitability ends. It is argued that the equivalence between cash accounting and accrual accounting is the way of verifying such steady-state assumption. The main contribution of this paper is to provide an accuracy index measuring the variance of the target prices due to variations in long-term assumptions. The efficacy of this index is validated by using Logit and Cox regression models on a sample of 784 equity reports on European companies published by sell-side analysts.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://hdl.handle.net/10446/422
    Our checks indicate that this address may not be valid because: 500 Internal Server Error. If this is indeed the case, please notify (University of Bergamo Library)


    Download Restriction: no

    Paper provided by Department of Economics and Technology Management, University of Bergamo in its series Working Papers with number 0705.

    as
    in new window

    Length:
    Date of creation: 2007
    Date of revision:
    Handle: RePEc:brh:wpaper:0705
    Contact details of provider: Postal: viale Marconi 5, 24044 Dalmine
    Phone: 0352052341
    Web page: http://www.unibg.it/struttura/en_struttura.asp?cerca=en_dige_intro

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:brh:wpaper:0705. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (University of Bergamo Library)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.