SELF-ADAPTIVE VALUATION OF EQUITY BASED ON OHLSON MODEL
Wei Xuan XU(1),Zheng Lin LIU(2)
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(1)Institute of Policy and management, Chinese Academy of Sciences, Beijing 100080,P.R.China;(2)University of Scienceand Technology of China, Hefei 230026,P.R.China
The valuation of enterprises' equity is fundamental to the investors. In 1995, J. Ohlson proposed RI (Residual Income) to develop a new method for the valuation. However, J. Ohlson proposed RI (Residual Income) to develop a new method for the valuation. However, Ohlson's model requires rightly estimating the yield and RI in future stages, hence is less practical. This paper gives a new model for equity valuation based on Ohlson's and Gordon's models. They key parameter of the model can be estimated by an iterative process which is developed by utilizing new information in the growing course of the enterprises evaluated. It is proved that the estimating process is convergent and hence the model is more practical.
Wei Xuan XU
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SELF-ADAPTIVE VALUATION OF EQUITY BASED ON OHLSON MODEL. Journal of Systems Science and Mathematical Sciences, 2002, 22(3): 270-277 https://doi.org/10.12341/jssms09648