Is There A Relationship Between EV/EBIT and Returns on The Danish Stock Market?
(2021) NEKH02 20211Department 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:
http://lup.lub.lu.se/student-papers/record/9049531
- author
- Johansson, William LU
- supervisor
- organization
- course
- NEKH02 20211
- year
- 2021
- 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}}, }