PT  - JOURNAL ARTICLE
AU  - Allan C. Eberhart
TI  - Equity Valuation Using Multiples
AID  - 10.3905/joi.2004.412306
DP  - 2004 May 31
TA  - The Journal of Investing
PG  - 48--54
VI  - 13
IP  - 2
4099  - https://pm-research.com/content/13/2/48.short
4100  - https://pm-research.com/content/13/2/48.full
AB  - The valuation of equity using multiples of comparables is a highly popular technique that depends critically on two factors: the multiple that is used, and the comparables that are chosen. Recent research investigates which type of multiples produce the greatest valuation accuracy, but there is so far no extensive examination of the accuracy of alternative comparable firm classifications. The examination here finds that Dow Jones and Value Line provide significantly greater accuracy than more popular classifications such as the SIC codes.