@article{5192,
  abstract     = {{For the valuation of fast growing innovative firms Schwartz and Moon (Financ Anal J 56:62–75, 2000), (Financ Rev 36:7–26, 2001) develop a fundamental valuation model where key parameters follow stochastic processes. While prior research shows promising potential for this model, it has never been tested on a large scale dataset. Thus, guided by economic theory, this paper is the first to design a large-scale applicable implementation on around 30,000 technology firm quarter observations from 1992 to 2009 for the US to assess this model. Evaluating the feasibility and performance of the Schwartz-Moon model reveals that it is comparably accurate to the traditional sales multiple with key advantages in valuing small and non-listed firms. Most importantly, however, the model is able to indicate severe market over- or undervaluation from a fundamental perspective. We demonstrate that a trading strategy based on our implementation has significant investment value. Consequently, the model seems suitable for detecting misvaluations as the dot-com bubble.}},
  author       = {{Klobucnik, Jan and Sievers, Sönke}},
  journal      = {{Journal of Business Economics (VHB-JOURQUAL 4 Ranking B)}},
  keywords     = {{Schwartz-Moon model, Market mispricing, Empirical test, Company valuation, Trading strategy}},
  number       = {{9}},
  pages        = {{947--984}},
  publisher    = {{Springer}},
  title        = {{{Valuing high technology growth firms}}},
  doi          = {{https://doi.org/10.1007/s11573-013-0684-2}},
  volume       = {{83}},
  year         = {{2013}},
}