SUBJECTIVE VALUATION AND TARGET PRICE ACCURACY

In this paper, we analyze how subjective adjustments to baseline models by analysts affect the forecasting accuracy. For a panel of analyst reports, we show that target price forecasts that deviate significantly from simple multiple-based pseudo-target prices are (ex-post) more accurate. By controll...

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Bibliographic Details

Published in:	Journal of Financial Management, Markets and Institutions
Main Authors:	STEFANO BONINI, VINCENZO CAPIZZI, ALEXANDER KERL
Format:	Article
Language:	English
Published:	World Scientific Publishing 2022-06-01
Subjects:	Target prices equity research forecast accuracy multiple valuation
Online Access:	https://www.worldscientific.com/doi/10.1142/S2282717X22500050