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Showing posts with label Valuation. Show all posts
Showing posts with label Valuation. Show all posts

Tuesday, September 8, 2009

Conclusion-small: Equity Valuation using accounting numbers

VII. CONCLUSION:
Small sample
In this paper, the researcher empirically examined the success of multiple regression model. The researcher investigated if the R&D to Total Assets, Intangibles to Total Assets, Assets turnover, Profit margin, Equity Multiplier, and Return on total assets have no effect on the Equity Valuation from the informational data of LUVLE course website: https://luvle.lancs.ac.uk/Acfin/703.nfs. The researcher also used Frequency distribution and analysis of variance (ANOVA).
This paper examined the informational data of LUVLE course website: https://luvle.lancs.ac.uk/Acfin/703.nfs. The researcher discovered that the R&D to Total Assets, Intangibles to Total Assets, Assets turnover, Profit margin, Equity Multiplier, and Return on total assets have an effect on the Equity Valuation from the informational data of LUVLE course website. This means that other variables can affect the flaws of the equity valuation. The researcher suggested the additional parameters for the greater accuracy of the model.

Results: Equity Valuation using accounting numbers

VI. RESULTS
Small sample
This section presents the analysis of the data on the study to find out if the R&D to Total Assets, Intangibles to Total Assets, Assets turnover, Profit margin, Equity Multiplier, and Return on total assets have an effect on the Equity Valuation. The Multiple Regression model was used to examine the effect of the other values to the equity valuation using LUVLE course website informational data. The descriptive statistics was also used in this study for the presentation purposes. Graphs 1 to 2 show the inflation of the elasticity of the variables.

The statistical informational data was from LUVLE course website: https://luve.lancs.ac.uk/Acfin/703.nfs.
Graph 1 above shows that out of 25, only 6 companies have a high R & D Range. The Firm number 6 got the highest inflation of R & D value which range between 150,000,000 and followed by Firm 5 and Firm 2, range near 50,000,000. The fourth firm who got R & D lower than 50,000,000was Firm 4. This implies that there were only few Firms who focused on the R & D. This means that many Firms were afraid to gamble or to take the risk in spending too much in Research and Development (R & D). This also shows that even though Firms belong to above £ 10,000 R & D, there were still other factors that can affect the interest of the investors.
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