Date of Completion
Spring 5-10-2009
Thesis Advisor(s)
George Plesko
Honors Major
Accounting
Disciplines
Accounting | Business | Portfolio and Security Analysis
Abstract
This paper examines the use of price multiples to predict stock returns. The price to earnings, price to sales, and price to book value multiples are regressed against annual stock returns to determine if a relation between the magnitude of the multiples and returns exists. The results indicate that there are relations between low price to earnings and price to sales multiples and positive returns. I find no evidence that the price to book value multiple can be used to develop a stock buying strategy.
Recommended Citation
Zamichiei, Jason, "Price Multiples as Indicators of Stock Price Movement: Evidence from the 21st Century" (2009). Honors Scholar Theses. 65.
https://digitalcommons.lib.uconn.edu/srhonors_theses/65