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

This paper examines the valuation performances of seven multiples on a sample of BSE-listed rms. When industry membership is used as the selection method for compa- rable rms, the P/CF multiple leads to the best valuation performance. P/E, P/B, P/CF and P/TA multiples assure the highest accuracies when ROE is used as the selection method for compar..