Valuing high technology growth firms

J. Klobucnik, S. Sievers, Journal of Business Economics 83 (2013) 947–984.

Download
No fulltext has been uploaded.
Journal Article | Published | English
Author
;
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.
Publishing Year
Journal Title
Journal of Business Economics
Volume
83
Issue
9
Page
947-984
LibreCat-ID

Cite this

Klobucnik J, Sievers S. Valuing high technology growth firms. Journal of Business Economics. 2013;83(9):947-984.
Klobucnik, J., & Sievers, S. (2013). Valuing high technology growth firms. Journal of Business Economics, 83(9), 947–984.
@article{Klobucnik_Sievers_2013, title={Valuing high technology growth firms}, volume={83}, number={9}, journal={Journal of Business Economics}, publisher={Springer}, author={Klobucnik, Jan and Sievers, Sönke}, year={2013}, pages={947–984} }
Klobucnik, Jan, and Sönke Sievers. “Valuing High Technology Growth Firms.” Journal of Business Economics 83, no. 9 (2013): 947–84.
J. Klobucnik and S. Sievers, “Valuing high technology growth firms,” Journal of Business Economics, vol. 83, no. 9, pp. 947–984, 2013.
Klobucnik, Jan, and Sönke Sievers. “Valuing High Technology Growth Firms.” Journal of Business Economics, vol. 83, no. 9, Springer, 2013, pp. 947–84.

Export

Marked Publications

Open Data LibreCat

Search this title in

Google Scholar