Equity Valuation: A Survey of Professional Practice
26 Pages Posted: 9 Sep 2015
Date Written: September 7, 2015
This paper reports the results of a scientific survey of the equity valuation practices of CFA Institute members with equity analysis job responsibilities. Using an instrument designed to minimize biases in prior valuation surveys and sampling a larger group than in any previous study (13,500 investment professionals, resulting in 1,980 valid completed questionnaires), this paper documents professional practices in the selection of equity valuation approaches, including specific model variations and key input preferences.
Keywords: valuation methods, equity valuation, equity analysis, equity analysts, discounted cash flow models, market multiples, equity risk premium
JEL Classification: G11, G12, G24, M20, D53
Suggested Citation: Suggested Citation