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Is the price-to book/return on equity ratio constant across sectors?
This research paper investigates whether or not the Price-to-Book/ Return on Equity ratio is constant across the banking, retail, pharmaceutical and manufacturing sectors. The study makes use of statistical tests to determine if the ratio is constant. In addition, the research paper investigates the...
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| Format: | Thesis |
| Language: | English |
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Department of Finance and Tax
2014
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| _version_ | 1867613240146526208 |
|---|---|
| access_status_str | Open Access |
| author | Coultas, Andrew |
| author2 | Gstraunthaler, Thomas |
| author_browse | Coultas, Andrew Gstraunthaler, Thomas |
| author_facet | Gstraunthaler, Thomas Coultas, Andrew |
| author_sort | Coultas, Andrew |
| collection | Thesis |
| description | This research paper investigates whether or not the Price-to-Book/ Return on Equity ratio is constant across the banking, retail, pharmaceutical and manufacturing sectors. The study makes use of statistical tests to determine if the ratio is constant. In addition, the research paper investigates the explicatory powers of the DuPont model, the Federal interest rate, and Consumer price inflation of the Price-to-Book/ Return on Equity ratio. This research documents evidence that the Price-to-Book/Return on Equity ratio is not constant across sectors and that the explicatory powers of the DuPont model differ from sector to sector. The implications of these findings are that investors cannot apply the same Price-to-Book/ Return on Equity ratio across sectors when evaluating stocks relative to each other. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/10321 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:58.612Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/10321 Is the price-to book/return on equity ratio constant across sectors? Coultas, Andrew Gstraunthaler, Thomas Financial Management This research paper investigates whether or not the Price-to-Book/ Return on Equity ratio is constant across the banking, retail, pharmaceutical and manufacturing sectors. The study makes use of statistical tests to determine if the ratio is constant. In addition, the research paper investigates the explicatory powers of the DuPont model, the Federal interest rate, and Consumer price inflation of the Price-to-Book/ Return on Equity ratio. This research documents evidence that the Price-to-Book/Return on Equity ratio is not constant across sectors and that the explicatory powers of the DuPont model differ from sector to sector. The implications of these findings are that investors cannot apply the same Price-to-Book/ Return on Equity ratio across sectors when evaluating stocks relative to each other. 2014-12-27T19:55:49Z 2014-12-27T19:55:49Z 2011 Master Thesis Masters MCom http://hdl.handle.net/11427/10321 eng application/pdf Department of Finance and Tax Faculty of Commerce University of Cape Town |
| spellingShingle | Financial Management Coultas, Andrew Is the price-to book/return on equity ratio constant across sectors? |
| thesis_degree_str | Master's |
| title | Is the price-to book/return on equity ratio constant across sectors? |
| title_full | Is the price-to book/return on equity ratio constant across sectors? |
| title_fullStr | Is the price-to book/return on equity ratio constant across sectors? |
| title_full_unstemmed | Is the price-to book/return on equity ratio constant across sectors? |
| title_short | Is the price-to book/return on equity ratio constant across sectors? |
| title_sort | is the price to book return on equity ratio constant across sectors |
| topic | Financial Management |
| url | http://hdl.handle.net/11427/10321 |
| work_keys_str_mv | AT coultasandrew isthepricetobookreturnonequityratioconstantacrosssectors |