Valuing high technology growth firms

J. Klobucnik, S. Sievers, Journal of Business Economics (VHB-JOURQUAL 3 Ranking B) 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 (VHB-JOURQUAL 3 Ranking B)
Volume
83
Issue
9
Page
947-984
LibreCat-ID

Cite this

Klobucnik J, Sievers S. Valuing high technology growth firms. Journal of Business Economics (VHB-JOURQUAL 3 Ranking B). 2013;83(9):947-984. doi:https://doi.org/10.1007/s11573-013-0684-2
Klobucnik, J., & Sievers, S. (2013). Valuing high technology growth firms. Journal of Business Economics (VHB-JOURQUAL 3 Ranking B), 83(9), 947–984. https://doi.org/10.1007/s11573-013-0684-2
@article{Klobucnik_Sievers_2013, title={Valuing high technology growth firms}, volume={83}, DOI={https://doi.org/10.1007/s11573-013-0684-2}, number={9}, journal={Journal of Business Economics (VHB-JOURQUAL 3 Ranking B)}, 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 (VHB-JOURQUAL 3 Ranking B) 83, no. 9 (2013): 947–84. https://doi.org/10.1007/s11573-013-0684-2.
J. Klobucnik and S. Sievers, “Valuing high technology growth firms,” Journal of Business Economics (VHB-JOURQUAL 3 Ranking B), vol. 83, no. 9, pp. 947–984, 2013.
Klobucnik, Jan, and Sönke Sievers. “Valuing High Technology Growth Firms.” Journal of Business Economics (VHB-JOURQUAL 3 Ranking B), vol. 83, no. 9, Springer, 2013, pp. 947–84, doi:https://doi.org/10.1007/s11573-013-0684-2.

Link(s) to Main File(s)
Access Level
Restricted Closed Access

Export

Marked Publications

Open Data LibreCat

Search this title in

Google Scholar