Equity Value as a Function of (eps1, eps2, dps1, bvps, beta): Concepts and Realities. Discussion of Ohlson and Johannesson
Abacus 52(1):100-105 · February 2016
6 Pages Posted: 23 Dec 2015 Last revised: 20 May 2016
Date Written: December 22, 2015
Ohlson and Johannesson (2016) examine how valuation models and model inputs help explain stock prices. In particular, they develop and test a new valuation model based on abnormal earnings growth (AEG). They also critique residual income valuation (RIV). The issue is important since the two valuation approaches play a central role in research and textbooks.
Keywords: valuation, OJ, RIV, earnings, book value, dividends
JEL Classification: M41, G12, G14
Suggested Citation: Suggested Citation