RELATIVE PERFORMANCE OF VALUATION USING MULTIPLES.EMPIRICAL EVIDENCE ON BUCHAREST STOCK EXCHANGE

This paper examines the valuation performances of seven multiples on a sampleof BSE-listed firms. When industry membership is used as the selection method for comparablefirms, the P/CF multiple leads to the best valuation performance. P/E, P/B, P/CFand P/TA multiples assure the highest accuracies when ROE is used as the selection methodfor comparable firms. In the case of both selection methods of comparables, the P/S multipleleads to the least accurate valuation. In this study, accuracy levels of multiple valuationsare generally lower than those obtained using the same methods on more developed capitalmarkets.