Earnings valuation and sources of growth

Vol: 
32/2008
Author name: 
Shaffer S
Year: 
2008
Month: 
October
Abstract: 

A structural discounted cash flow (DCF) model shows that the underlying sources of earnings growth generate very different growth paths and equity values than assumed in traditional DCF calculations. Moreover, the structural DCF model can assess the impact of exogenous factors on valuation, uncovering new costs of deflation or high inflation among other results. These findings have important implications for researchers, policy makers, and practitioners.

Publication file: 

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