Equity Valuation: A Survey of Professional Practice

26 Pages Posted: 9 Sep 2015  

Jerald E. Pinto

CFA Institute

Thomas R Robinson

AACSB International

John D. Stowe

Ohio University

Date Written: September 7, 2015

Abstract

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

Pinto, Jerald E. and Robinson, Thomas R and Stowe, John D., Equity Valuation: A Survey of Professional Practice (September 7, 2015). Available at SSRN: https://ssrn.com/abstract=2657717 or http://dx.doi.org/10.2139/ssrn.2657717

Jerald E. Pinto (Contact Author)

CFA Institute ( email )

915 East High Street
Charlottesville, VA 22902
United States

Thomas R Robinson

AACSB International ( email )

777 South Harbour Island Blvd
Suite 750
Tampa, FL Florida 33602
United States
8137696503 (Phone)

John D. Stowe

Ohio University ( email )

640 Copeland
Athens, OH 45701
United States
(740) 593-9439 (Phone)
(740) 593-9539 (Fax)

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