IDEAS home Printed from https://ideas.repec.org/p/hhs/stavef/2017_011.html
   My bibliography  Save this paper

"Big Fish": Valuation of the world's largest salmon farming companies

Author

Listed:
  • Misund, Bard

    (UiS)

  • Nygard, Rune

    (University College of South East Norway)

Abstract

The recent five years have seen a nearly tenfold increase the salmon stock price index at the Oslo Stock Exchange. This paper tries to shed some light on the reasons why this substantial stock price appreciation has occurred. The primary aim is to ascertain if the market valuation of salmon farming companies can be explained by rational factors, or there is an element of irrational exuberance behind current all-time high salmon stock prices. In particular, we examine the impact of both fundamental and operational value drivers. The results suggest that a structural shift has occurred, leading to a stronger association between fundamentals and market valuations after 2012, suggesting that at least some of the stock price increase is linked to fundamental factors.

Suggested Citation

  • Misund, Bard & Nygard, Rune, 2017. ""Big Fish": Valuation of the world's largest salmon farming companies ," UiS Working Papers in Economics and Finance 2017/11, University of Stavanger.
    • Handle: RePEc:hhs:stavef:2017_011
    as

    Download full text from publisher

    File URL: http://www1.uis.no/ansatt/odegaard/uis_wps_econ_fin/uis_wps_2017_11_misund_nygard.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Itemgenova, Aigerim & Sikveland, Marius, 2020. "The determinants of the price-earnings ratio in the Norwegian aquaculture industry," Journal of Commodity Markets, Elsevier, vol. 17(C).

    More about this item

    Keywords

    salmon company valuation; price-to-book ratio; valuation multiples; salmon price; salmon aquaculture; salmon farming;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:hhs:stavef:2017_011. 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: Bernt Arne Odegaard (email available below). General contact details of provider: https://edirc.repec.org/data/iouisno.html .

    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.