What Valuation Models Do Analysts Use

By Efthimios Demirakos, Norman Strong, Martin Walker. 2004

331 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/43d8b03687aded92479235c2ff9919ea4550c4be

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. C. Clubb
2. Sundaresh Ramnath
3. Richard William Barker
4. Shahed Imam
5. William J. Mayew
6. Philip B. Shane
7. Mark A. Clatworthy
8. S. Rock

In Finance

1. C. Clubb
2. Sundaresh Ramnath
3. Richard William Barker
4. Shahed Imam
5. Stefano Cascino
6. William J. Mayew
7. Philip B. Shane
8. Mark A. Clatworthy

In Strategy and Management

1. C. Clubb
2. Sundaresh Ramnath
3. Richard William Barker
4. Shahed Imam
5. William J. Mayew
6. Philip B. Shane
7. Mark A. Clatworthy
8. S. Rock

Citations in the corpus

• Who Uses Financial Reports and for What Purpose? Evidence from Capital Providers (2014, positive): “However, more recent evidence shows that DCF models are used more than earnings models, particularly in growth industries (Demirakos et al., 2004; Glaum and Friedrich, 2006).”
• The Use of Valuation Models by UK Investment Analysts (2008, methodology): “Grant (1997), Demirakos et al. (2004) and Fogarty and Rogers (2005).”
• Evidence of Management Discrimination Among Analysts during Earnings Conference Calls (2008, background): “With respect to the analyst's role of assessing market value and issuing stock recommendations, information provided by management to one analyst may not be beneficial to another analyst to the extent that analysts use different valuation models for assessing firm value (Demirakos et al, 2004).”
• The Financial Analyst Forecasting Literature: A Taxonomy with Suggestions for Further Research (2008, positive): “9 Also see Demirakos et al., (2004), who use content analysis of Investext reports and find that analysts overwhelmingly refer to simple P/E multiples (as opposed to DCF or earnings-based valuation models) to support their stock recommendations. forecasts into valuation and recommendation judgments ”
• The Role of Accruals in Asymmetrically Timely Gain and Loss Recognition (2005, critical): “This observation challenges the linear specification that is common to the standard accruals models, including the workhorse Jones (1991) model.”
• Does Valuation Model Choice Affect Target Price Accuracy? (2010, neutral): “In contrast, the main message from the literature on valuation model choice in practice is that sell-side analysts prefer single-period earnings models (Barker, 1999; Block, 1999; Bradshaw, 2002; Demirakos et al., 2004; Asquith et al., 2005).”