Share Repurchases and Stock Valuation Models

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CFA Digest
February 2010 | Vol. 40 | No. 1
Source: CFA Institute
John D. Stowe, CFA Dennis W. McLeavey, CFA Jerald E. Pinto, CFA
Ahmed Sule, CFA (Reviewer)

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Abstract

The authors examine the impact of stock repurchases on stock valuation models. They find that valuation estimates derived from traditional dividend discount models are still valid and yield results similar to those from total cash flow models.

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Topics
Equity Investments
    :
  • Fundamental Analysis (Sector, Industry, Company) and the Valuation of Individual Equity Securities
|
Portfolio Management
    :
  • Portfolio Concepts from Capital Market Theory
|
Quantitative Methods
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