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Comparing share valuation models in boom and recession conditions : a South African study
Dissertation (MCom)--University of Pretoria, 2012.
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| Format: | Thesis |
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University of Pretoria
2013
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| _version_ | 1867613473397014528 |
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| access_status_str | Open Access |
| author2 | De Beer, J.S. |
| author_browse | De Beer, J.S. |
| author_facet | De Beer, J.S. |
| collection | Thesis |
| dc_rights_str_mv | © 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Dissertation (MCom)--University of Pretoria, 2012. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/30119 |
| institution | University of Pretoria (South Africa) |
| last_indexed | 2026-06-10T12:36:42.450Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/30119 Comparing share valuation models in boom and recession conditions : a South African study De Beer, J.S. dowelm@unisa.ac.za Dowelani, Musimuni Recession Boom Business cycles Valuation performance Dividend discount model Intrinsic value Price earnings model UCTD Dissertation (MCom)--University of Pretoria, 2012. The study’s main concern was the extent to which the price earnings (P/E) valuation model and constant growth dividend discount valuation model (DDM) can estimate the intrinsic value of a share. The context within which the concern was addressed is the boom and recession conditions of South Africa during the period 1994–1999. The study used the following descriptive statistics to make a comparison of the performance of each model: <ul><li> Theil’s inequality coefficient; </li><li> coefficient of variation; </li><li> percentage improvement in the inter-quartile range (%IMP); and</li><li> the Wilcoxon test and the Kruskal-Wallis test. </li></ul> The study found that: <ul><li> the DDM is more efficient in estimating the intrinsic value in the boom period compared to the recession period. </li><li> P/E is more efficient in estimating the intrinsic value in the recession period than the boom period. </li><li> When the business cycle changed from a boom to a recession the %IMP increased for the DDM and the P/E model showing that there was no improvement in performance. Instead, it showed an increase in the IQR of each model. The increase in the DDM was smaller than that of the P/E model. </li><li> The difference between the absolute valuation errors of the DDM across the two phases of the business cycle (boom and recession) was not statistically significant while those of the P/E were significant. </li></ul> Financial Management unrestricted 2013-09-07T18:03:22Z 2012-12-13 2013-09-07T18:03:22Z 2012-09-07 2012-12-13 2012-12-05 Dissertation Dowelani, M 2012, Comparing share valuation models in boom and recession conditions : a South African study, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/30119 > F12/9/17/ag http://hdl.handle.net/2263/30119 http://upetd.up.ac.za/thesis/available/etd-12052012-085923/ © 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | Recession Boom Business cycles Valuation performance Dividend discount model Intrinsic value Price earnings model UCTD Comparing share valuation models in boom and recession conditions : a South African study |
| title | Comparing share valuation models in boom and recession conditions : a South African study |
| title_full | Comparing share valuation models in boom and recession conditions : a South African study |
| title_fullStr | Comparing share valuation models in boom and recession conditions : a South African study |
| title_full_unstemmed | Comparing share valuation models in boom and recession conditions : a South African study |
| title_short | Comparing share valuation models in boom and recession conditions : a South African study |
| title_sort | comparing share valuation models in boom and recession conditions a south african study |
| topic | Recession Boom Business cycles Valuation performance Dividend discount model Intrinsic value Price earnings model UCTD |
| url | http://hdl.handle.net/2263/30119 http://upetd.up.ac.za/thesis/available/etd-12052012-085923/ |