Examining the Effectiveness of Discounted Cash Flow Models
(2010) NEKK01 20092Department of Economics
- Abstract
- The paper examines whether a variation of the one and two period discounted cash flow models using optimized investment horizons can be used to explain and/or predict stock prices. In addition to this, the optimized horizons themselves are analyzed to see how long a stock is held in different market climates.
The results show that the models cannot be used for pricing stocks. Neither can they explain stock prices. Regarding the investment horizon, no conclusive results are generated.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1613634
- author
- Braw, Daniel LU
- supervisor
- organization
- course
- NEKK01 20092
- year
- 2010
- type
- M2 - Bachelor Degree
- subject
- keywords
- Stock Valuation, Market Efficiency, Discounted Cash Flow, Gordon's Formula, DCF
- language
- English
- id
- 1613634
- date added to LUP
- 2010-06-21 09:04:28
- date last changed
- 2010-06-21 09:04:28
@misc{1613634, abstract = {{The paper examines whether a variation of the one and two period discounted cash flow models using optimized investment horizons can be used to explain and/or predict stock prices. In addition to this, the optimized horizons themselves are analyzed to see how long a stock is held in different market climates. The results show that the models cannot be used for pricing stocks. Neither can they explain stock prices. Regarding the investment horizon, no conclusive results are generated.}}, author = {{Braw, Daniel}}, language = {{eng}}, note = {{Student Paper}}, title = {{Examining the Effectiveness of Discounted Cash Flow Models}}, year = {{2010}}, }