What is the Intrinsic Value of the Dow

@inproceedings{Lee1999WhatIT,
  title={What is the Intrinsic Value of the Dow},
  author={Charles M. C. Lee and James Myers and Bhaskaran Swaminathan},
  year={1999}
}
We model the time-series relation between price and intrinsic value as a cointegrated system, so that price and value are long-term convergent. In this framework, we compare the performance of alternative estimates of intrinsic value for the Dow 30 stocks. During 1963-1996, traditional market multiples (e.g., B/P, E/P, and D/P ratios) have little predictive power. However, a V/P ratio, where V is based on a residual income valuation model, has statistically reliable predictive power. Further… CONTINUE READING
BETA

Citations

Publications citing this paper.

FILTER CITATIONS BY YEAR

1996
2019

CITATION STATISTICS

  • 24 Highly Influenced Citations

  • Averaged 3 Citations per year over the last 3 years

References

Publications referenced by this paper.
SHOWING 1-10 OF 51 REFERENCES

1996a, “Accounting valuation, market expectation, and the book-to-market effect,

  • Frankel, Richard, Charles M.C. Lee
  • 1996

A comparison of dividend, cash flow, and earnings approaches to equity valuation,

  • Penman, H Stephen, Theodore
  • Sougiannis,
  • 1996

A synthesis of equity valuation techniques and the terminal value calculation for the dividend discount model,

  • Penman, Steven
  • 1996

Accounting Classification and the Predictive Content of Earnings,

  • Fairfield, Patricia, Richard J. Sweeney, Teri L. Yohn
  • The Accounting Review,
  • 1996

Measuring Wealth

  • Lee, C CharlesM.
  • The CA Magazine,
  • 1996

Similar Papers

Loading similar papers…