{"volume":83,"abstract":[{"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.","lang":"eng"}],"doi":"https://doi.org/10.1007/s11573-013-0684-2","keyword":["Schwartz-Moon model","Market mispricing","Empirical test","Company valuation","Trading strategy"],"jel":["G11","G12","G17","G33"],"page":"947-984","type":"journal_article","date_created":"2018-10-31T11:31:56Z","publication":"Journal of Business Economics (VHB-JOURQUAL 3 Ranking B)","issue":"9","author":[{"first_name":"Jan","full_name":"Klobucnik, Jan","last_name":"Klobucnik"},{"id":"46447","first_name":"Sönke","full_name":"Sievers, Sönke","last_name":"Sievers"}],"status":"public","year":"2013","_id":"5192","intvolume":"        83","article_type":"original","main_file_link":[{"url":"https://link.springer.com/article/10.1007/s11573-013-0684-2"}],"department":[{"_id":"275"}],"user_id":"46447","citation":{"mla":"Klobucnik, Jan, and Sönke Sievers. “Valuing High Technology Growth Firms.” <i>Journal of Business Economics (VHB-JOURQUAL 3 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>.","ieee":"J. Klobucnik and S. Sievers, “Valuing high technology growth firms,” <i>Journal of Business Economics (VHB-JOURQUAL 3 Ranking B)</i>, vol. 83, no. 9, pp. 947–984, 2013.","apa":"Klobucnik, J., &#38; Sievers, S. (2013). Valuing high technology growth firms. <i>Journal of Business Economics (VHB-JOURQUAL 3 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>","short":"J. Klobucnik, S. Sievers, Journal of Business Economics (VHB-JOURQUAL 3 Ranking B) 83 (2013) 947–984.","ama":"Klobucnik J, Sievers S. Valuing high technology growth firms. <i>Journal of Business Economics (VHB-JOURQUAL 3 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>","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 3 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 3 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>."},"publisher":"Springer","title":"Valuing high technology growth firms","date_updated":"2022-01-06T07:01:43Z","publication_status":"published","quality_controlled":"1","language":[{"iso":"eng"}],"extern":"1"}