A Bayesian Framework for Combining Valuation Estimates

Simple item page
dc.creatorYee, Kenton K.
dc.date2007-07-24
dc.date.accessioned2026-07-07T12:05:18Z
dc.date.available2026-07-07T12:05:18Z
dc.descriptionObtaining more accurate equity value estimates is the starting point for stock selection, value-based indexing in a noisy market, and beating benchmark indices through tactical style rotation. Unfortunately, discounted cash flow, method of comparables, and fundamental analysis typically yield discrepant valuation estimates. Moreover, the valuation estimates typically disagree with market price. Can one form a superior valuation estimate by averaging over the individual estimates, including market price? This article suggests a Bayesian framework for combining two or more estimates into a superior valuation estimate. The framework justifies the common practice of averaging over several estimates to arrive at a final point estimate.
dc.descriptionCitations at http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=240309 Review of Quantitative Finance and Accounting, 30.3 (2008) forthcoming
dc.identifierhttps://arxiv.org/abs/0707.3482
dc.identifierhttp://arxiv.org/abs/0707.3482
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/208342
dc.subjectStatistical Finance
dc.subjectComputational Engineering, Finance, and Science
dc.subjectAdaptation and Self-Organizing Systems
dc.subjectChaotic Dynamics
dc.subjectExactly Solvable and Integrable Systems
dc.subjectPopular Physics
dc.subjectPhysics and Society
dc.subjectApplications
dc.titleA Bayesian Framework for Combining Valuation Estimates
dc.typetext

Files

Collections

arXiv