TY - JOUR T1 - Determinants of Relative Valuation in Different Industry Sectors—<em>An Empirical Study</em> JF - The Journal of Wealth Management SP - 73 LP - 85 DO - 10.3905/jwm.2019.22.1.073 VL - 22 IS - 1 AU - B. Rajesh Kumar Y1 - 2019/04/30 UR - https://pm-research.com/content/22/1/73.abstract N2 - This article aims to determine the fundamental drivers of various relative valuation multiples in different industry sectors. It is based on a sample of 189 companies in seven industry sectors. Through regression analysis, the study identifies the determinant variables for the most widely used earnings, revenue, and book value multiples: P/E ratios, enterprise value to EBITDA multiple and price to book multiple. Additionally, we find that dividend payouts have different effects on valuation multiples in different sectors.TOPICS: Fundamental equity analysis, statistical methods ER -