PT  - JOURNAL ARTICLE
AU  - B. Rajesh Kumar
TI  - Determinants of Relative Valuation in Different Industry Sectors—<em>An Empirical Study</em>
AID  - 10.3905/jwm.2019.22.1.073
DP  - 2019 Apr 30
TA  - The Journal of Wealth Management
PG  - 73--85
VI  - 22
IP  - 1
4099  - https://pm-research.com/content/22/1/73.short
4100  - https://pm-research.com/content/22/1/73.full
AB  - 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