---
_id: '5192'
abstract:
- lang: eng
  text: 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.
article_type: original
author:
- first_name: Jan
  full_name: Klobucnik, Jan
  last_name: Klobucnik
- first_name: Sönke
  full_name: Sievers, Sönke
  id: '46447'
  last_name: Sievers
citation:
  ama: Klobucnik J, Sievers S. Valuing high technology growth firms. <i>Journal of
    Business Economics (VHB-JOURQUAL 4 Ranking B)</i>. 2013;83(9):947-984. doi:<a
    href="https://doi.org/10.1007/s11573-013-0684-2">https://doi.org/10.1007/s11573-013-0684-2</a>
  apa: Klobucnik, J., &#38; Sievers, S. (2013). Valuing high technology growth firms.
    <i>Journal of Business Economics (VHB-JOURQUAL 4 Ranking B)</i>, <i>83</i>(9),
    947–984. <a href="https://doi.org/10.1007/s11573-013-0684-2">https://doi.org/10.1007/s11573-013-0684-2</a>
  bibtex: '@article{Klobucnik_Sievers_2013, title={Valuing high technology growth
    firms}, volume={83}, DOI={<a href="https://doi.org/10.1007/s11573-013-0684-2">https://doi.org/10.1007/s11573-013-0684-2</a>},
    number={9}, journal={Journal of Business Economics (VHB-JOURQUAL 4 Ranking B)},
    publisher={Springer}, author={Klobucnik, Jan and Sievers, Sönke}, year={2013},
    pages={947–984} }'
  chicago: 'Klobucnik, Jan, and Sönke Sievers. “Valuing High Technology Growth Firms.”
    <i>Journal of Business Economics (VHB-JOURQUAL 4 Ranking B)</i> 83, no. 9 (2013):
    947–84. <a href="https://doi.org/10.1007/s11573-013-0684-2">https://doi.org/10.1007/s11573-013-0684-2</a>.'
  ieee: 'J. Klobucnik and S. Sievers, “Valuing high technology growth firms,” <i>Journal
    of Business Economics (VHB-JOURQUAL 4 Ranking B)</i>, vol. 83, no. 9, pp. 947–984,
    2013, doi: <a href="https://doi.org/10.1007/s11573-013-0684-2">https://doi.org/10.1007/s11573-013-0684-2</a>.'
  mla: Klobucnik, Jan, and Sönke Sievers. “Valuing High Technology Growth Firms.”
    <i>Journal of Business Economics (VHB-JOURQUAL 4 Ranking B)</i>, vol. 83, no.
    9, Springer, 2013, pp. 947–84, doi:<a href="https://doi.org/10.1007/s11573-013-0684-2">https://doi.org/10.1007/s11573-013-0684-2</a>.
  short: J. Klobucnik, S. Sievers, Journal of Business Economics (VHB-JOURQUAL 4 Ranking
    B) 83 (2013) 947–984.
date_created: 2018-10-31T11:31:56Z
date_updated: 2026-04-09T08:00:16Z
department:
- _id: '275'
doi: https://doi.org/10.1007/s11573-013-0684-2
extern: '1'
intvolume: '        83'
issue: '9'
jel:
- G11
- G12
- G17
- G33
keyword:
- Schwartz-Moon model
- Market mispricing
- Empirical test
- Company valuation
- Trading strategy
language:
- iso: eng
main_file_link:
- url: https://link.springer.com/article/10.1007/s11573-013-0684-2
page: 947-984
publication: Journal of Business Economics (VHB-JOURQUAL 4 Ranking B)
publication_status: published
publisher: Springer
quality_controlled: '1'
status: public
title: Valuing high technology growth firms
type: journal_article
user_id: '115848'
volume: 83
year: '2013'
...