New Results on Stock Prices and Fundamental Value

Lamdin, Douglas J.

doi:10.2139/ssrn.214389

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New Results on Stock Prices and Fundamental Value

9 Pages Posted: 13 May 2000

See all articles by Douglas J. Lamdin

Douglas J. Lamdin

University of Maryland, Baltimore County (UMBC) - Department of Economics

There are 2 versions of this paper

Date Written: Undated

Abstract

The S&P 500 Index is valued using the discounted dividend model. The model, however, must be corrected for the use of share repurchases. It is found that using the more optimistic, but not unreasonable assumptions, the S&P 500 is not overvalued. The index may therefore reflect underlying fundamental value.

JEL Classification: G12, G35

Suggested Citation: Suggested Citation

Lamdin, Douglas J., New Results on Stock Prices and Fundamental Value (Undated). Available at SSRN: https://ssrn.com/abstract=214389 or http://dx.doi.org/10.2139/ssrn.214389