<p>This thesis consists of an introductory chapter and four self-contained essays on the value relevance of financial statement information.</p><p>Essay 1: The purpose of this essay is to examine relevance of environmental information from an investor’s perspective. The study proposes that the market value of companies will reflect both financial and environmental performance. The theoretical foundation of the study is the accounting based valuation theory outlined by Ohlson (1995). This study provides new insights into how environmental performance is reflected in the market value of Swedish companies listed on the Swedish Stock market.</p><p>Essay 2: In financial accounting research, much effort has been devoted to study the relation between accounting earnings and stock prices. The primary purpose of the second essay is to investigate the effect of alternative return-earnings model specifications to the estimated returns-earnings relation, that is, the earnings response coefficients. The returns-earnings models investigated include the traditional earnings levels and changes, and models including analysts’ earnings forecasts based on Ohlson’s (1995) extended residual income model.</p><p>Essay 3: Fundamental analysis research that focuses on the use of accounting information to estimate equity value, has surfaced as a central theme in market based accounting research of the 1990s (Lee, 1999). The purpose of third essay is to compare two different approaches to valuation based on the theory presented in Ohlson (1995) in terms of explanatory and predictive power of the value estimates. Both approaches are implemented with and without the use of analysts forecasts. </p><p>Essay 4: In this essay data from the Swedish stock market is used to investigate the profitability of two different types of investment strategies based on fundamental-to-value ratios and past insider trading activity. The purpose of the research is to explore four related research questions: (i) Do accounting based trading strategies generate abnormal returns on the Swedish stock market?; (ii) Do trading strategies based on insider trading behaviour generate abnormal returns on the Swedish stock market?; (iii) Do insiders who buy stocks tend to favour value stocks and do insiders who sell stocks tend to dispose growth stocks?; and (iv) Are insiders able to discriminate between temporary high/low fundamentals and temporary low/high prices when buying/selling value stocks and growth stocks? </p>

This dissertation focuses on models for company (equity) valuation. Company valuation has many interacting components. Essay 1, On the Fundamentals of Company Valuation, discusses the different roles of these components and shows how their interaction can be captured in a valuation framework. Essay 2, Looking Beyond the Horizon, is devoted to problems connected with horizon (terminal) value estimations. Essay 3, Company Valuation with a Periodically Adjusted Cost of Capital, shows how the cost of equity and the weighted average cost of capital can be simultaneously adjusted to reflect varying capital structures. The main contribution of Essay 4, On the General Equivalence of Company Valuation Models, is the specification of a company valuation framework that ensures that the free cash flow, dividend, abnormal earnings, economic value added and adjusted present value models are all equivalent. One characteristic of the framework is that it explicitly links the specification of discount rates to the anticipated future development of the company. Moreover, the results highlight the reasons for why the different models can produce different value estimates in practical applications. / Diss. Stockholm : Handelshögsk.

This thesis deals with accounting-based equity valuation models. The first study contrasts the performance of three commonly used valuation models, using a large sample of analysts’ forecasts of the elements valued by these models (free cash flow, dividends and abnormal earnings/residual income). The second study investigates empirically whether discount rate estimation is a first-order effect in equity valuation. The third and fourth studies focus on developing routines for implementation of multi-period valuation models, including the critical issue of terminal value estimation. The thesis shows how model choice is a critical issue, given standard implementation of the valuation models (Study 1); how standard models for discount rate estimation are of little or no use practically (Study 2); how one can implement a multi-period valuation framework such that everything is internally consistent, and how this leads to several desirable features, such as model equivalency (Studies 3 and 4). The thesis is valuable to readers interested in accounting-based equity valuation who wish to understand, to distinguish among, and to appropriately implement valuation techniques. / Diss. Stockholm : Handelshögsk.

Fundamental analysts use basic fundamentals, which generally based on available public information, to determine a firm’s intrinsic value. Forecasting future performance is one of the key elements for doing fundamental analysis, and historical results are the foundation for future forecast. The analysis of this study is conducted into two sections with case studies in the airline business. Firstly, financial ratios are analyzed to examine whether low-cost or traditional airlines better perform their operations during a certain period. The other section is undertaking fundamental analysis of the case studies to evaluate current stock prices of representative airlines based on the potential future forecast. The model using for this valuation is the Residual Earnings Model. Key assumptions of future forecasts are mainly based on their historical ratios. Other related factor such as the gross domestic product (GDP) is included in forecasting sales growth rate because it is one of the key influences in the airline business. For ratio analysis, the findings suggest that low-cost airlines perform better operations based on five years average. However, the traditional airlines improve their performances significantly in the latest fiscal year. For equity valuation, the findings show that estimates of equity values of the airlines yield inconsistent results comparing to their stock prices. Possible reasons of the difference might be the improvement in key financial ratios of the airlines.

Background: The interest in shares has increased over the years, despite several stock market crashes. One reason for this is the emergence of stock trading online,which makes it easier for individuals to trade in shares. However, there has been much criticism towards financial analyst with the lack of fundamental basis to support their recommendations. Objective: The purpose of this study is to examine the share valuation models swedish financial analysts today applies and consider appropriate. A comparison will also be carried out in previous studies, to see if the application of the modelsand their suitability has changed. Method: The study used a qualitative approach with deductive approach. Semistructured interviews were conducted and the basis for the study's primary data.The theories and previous studies obtained through secondary data. Results: Our results demonstrate that no single model applied, is appropriate. Therefore, the financial analyst combines the models. Financial analysts place great emphasis on the macro-economic aspects in the valuation of shares. Macroeconomic analyses underlying fundamental valuation models.

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The discounted cash flow model and relative valuation models are ever-increasingly prevalent in today’s investment-heavy environment. In other words, theoretically inferior models are used in practice. It is this paradox that has lead us to compare the discounted cash flow model (DCFM), discounted dividend model (DDM), residual income-based model (RIVM) and the abnormal earnings growth model (AEGM) and their relative accuracy to observed stockprices. Adding to previous research, we investigate their performance in relation to the OMX30 index. What is more, we test how the performance of each model is affected by an extension of the forecast horizon. The study finds that AEGM outperforms the other models, both before and after extending the horizon. Our analysis was conducted by looking at accuracy, spread and the inherent speculative nature of each model. Taking all this into account, RIVM outperforms the other models. In this sense, one can question the rationale behind investor’s decision to primarily use the discounted cash flow model in equity valuation.

The aim of the thesis is valuation of the company DANONE, a.s. on the date 1.1.2010. The thesis consist of strategic analysis, financial analysis, analysis and prognosis of generators of value and financial plan. The value of the company is determined by the yield method DCF Equity and by the method of market multipliers.

The aim of this diploma thesis is to determine the objectivized value of CHÂTEAU VALTICE Vinné sklepy Valtice, a.s. while maintaining its current business concept as of 31.12.2015. The thesis is divided into several thematic units in accordance with the es-tablished valuation practice in the Czech Republic. First, the company is introduced and its financial health and competitive position on the market are assessed. The forecast of market share and revenue growth is based on the results of Strategic Analysis. The anal-ysis and prognosis of value generators are then used to compile a financial plan that forms the basis for a DCF equity valuation, which is complemented by a market-based valuation through industry multipliers method and also by substance-based valuation.

The aim of this diploma thesis is to determine the value in use of the company BEJO BOHEMIA, s.r.o. for its only owner -- the dutch company BEJO ZADEN. The appraisal is valid as of 31. 8. 2011. BEJO BOHEMIA, s.r.o. operates as a seller of vegetable seeds. The thesis is divided into following parts: strategic and financial analysis, generators of value, financial plan and appraisal. The appraisal is based on the DCF Equity method (with the use of alternative scenarios) and two alternative methods -- Similar public company method and Book value. The final interval of the appraisal is determined by the alternative scenarios of the DCF Equity methods.