Market-based Valuation Multiples: Evidence from Agribusiness Sector.

This article investigates the choice of multiples in valuing the agribusiness firms in Malaysia from 2003 to 2009. The agribusiness industry typically employs homogenous business models and produces standardized products, thus rendering excellent empirical settings to reveal the value drivers of suc...

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Publicado en:Pertanika Journal of Social Sciences & Humanities Vol. 23; no. 1; pp. 209 - 223
Autores principales: Chin Fei Goh, Rasli, Amran, Dziekonski, Krzysztof, Khan, Saif-Ur-Rehman
Formato: Artículo
Publicado: Universiti Putra Malaysia 2015
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Market-based Valuation Multiples: Evidence from Agribusiness Sector.
      aug:
        au:
          Chin Fei Goh
          Rasli, Amran
          Dziekonski, Krzysztof
          Khan, Saif-Ur-Rehman
        affil:
          Faculty of Management, Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia
          Faculty of Management, Bialystok Technical University, ul. Wiejska 45A, 15-351, Bialystok, Poland
      su:
        Agricultural industries
        Business valuation
        Business models
        Standardization
        Organizational performance
        Price-earnings ratio
        Business expansion
      sug:
        subj:
          Agricultural industries
          Business valuation
          Business models
          Standardization
          Organizational performance
          Price-earnings ratio
          Business expansion
      keyword:
        Agribusiness
        corporate valuation
        multiples
        plantation
        value driver
      ab: This article investigates the choice of multiples in valuing the agribusiness firms in Malaysia from 2003 to 2009. The agribusiness industry typically employs homogenous business models and produces standardized products, thus rendering excellent empirical settings to reveal the value drivers of such traditional industries. It was discovered that commonly adopted methodologies in valuation multiples are associated with pitfalls which may hamper the reliability of the valuations. Our findings also showed that price-to-earnings multiple leads to the best valuation performance, while price-to-sales multiple produces the worst results. Moreover, this research showed that growth prospect is an effective control factor in multiples valuation.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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