Valuing Commodity Companies:Case Studies from Companies in the Passive Components Industry
| Autor: | Chia-Hsuan Cheng, 鄭嘉玄 |
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| Rok vydání: | 2019 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 107 In a case of passive component industry in Taiwan, this study provides two approaches: normalized earnings and adaptive growth when valuing commodity firms with cyclical earnings and cash flow. By using these two concepts in valuation model in this study for instance: discounted cash flow model, multiple approach and excessive earnings method, we can find massive deviation between the trading prices and the intrinsic value during the first half of 2018, which especially significant in R-chip and MLCC companies. The following convergence in the second half of 2018, which can prove that the effectiveness and fairness of the two valuation approaches. Further, the study also finds unreasonable assumptions in equity research report published by many institutional investors, which assume the high peak could last in long run and being a new normal. Although institutional investors had advantage in gathering industry information, they didn’t take the cyclicality into consideration. Thus, by using one-time earnings to evaluate the companies through PE multiple approach, making the target price and the investment summary unreliable. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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