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Is There A Relationship Between EV/EBIT and Returns on The Danish Stock Market?

Johansson, William LU (2021) NEKH02 20211
Department of Economics
Abstract
The study can statistically certify that there exists a negative relationship between EV/EBIT-ratio and returns among stocks on the OMX Copenhagen Exchange between 2011-2021. It can also be concluded that EV/EBIT should not be used as the single factor when making investment decisions due to a low r-squared value. Portfolios consisting of low EV/EBIT companies managed to outperform high EV/EBIT portfolios in terms of absolute geometric yield.
Please use this url to cite or link to this publication:
author
Johansson, William LU
supervisor
organization
course
NEKH02 20211
year
type
M2 - Bachelor Degree
subject
keywords
Efficient Market Hypothesis, Enterprise Value, EV/EBIT, Investment Strategy, Value Investing, Growth Investing
language
English
id
9049531
date added to LUP
2021-07-05 13:34:02
date last changed
2021-07-05 13:34:02
@misc{9049531,
  abstract     = {{The study can statistically certify that there exists a negative relationship between EV/EBIT-ratio and returns among stocks on the OMX Copenhagen Exchange between 2011-2021. It can also be concluded that EV/EBIT should not be used as the single factor when making investment decisions due to a low r-squared value. Portfolios consisting of low EV/EBIT companies managed to outperform high EV/EBIT portfolios in terms of absolute geometric yield.}},
  author       = {{Johansson, William}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Is There A Relationship Between EV/EBIT and Returns on The Danish Stock Market?}},
  year         = {{2021}},
}