Effectiveness of Enterprise Multiple(EM) in Determining Returns in Technology Stocks
Utkarsh Pandey
, Mayannk Kumar Singh
Enterprise Multiple, Technology Sector, Financial Econometrics, EBITDA, Investment Strategy
This study evaluates the effectiveness of the Enterprise Multiple (EM), defined as Enterprise Value (EV) divided by
EBITDA, in predicting the yearly returns of technology sector stocks. EM, as a valuation metric, integrates the company’s
market valuation with its operational performance, making it a comprehensive tool for investment decision-making. This
paper analyzes historical data of publicly listed technology companies, focusing on the implications of high and low EM
multiples. By employing advanced statistical tools and robust methodologies, we identify significant patterns in stock
performance. The findings provide actionable insights for financial modeling and investment strategies, emphasizing the
potential of EM as a predictive tool for returns.
"Effectiveness of Enterprise Multiple(EM) in Determining Returns in Technology Stocks", JETNR - JOURNAL OF EMERGING TRENDS AND NOVEL RESEARCH (www.JETNR.org), ISSN:2984-9276, Vol.2, Issue 11, page no.a157-a170, November-2024, Available :https://rjpn.org/JETNR/papers/JETNR2411016.pdf
Volume 2
Issue 11,
November-2024
Pages : a157-a170
Paper Reg. ID: JETNR_231188
Published Paper Id: JETNR2411016
Downloads: 0001058
Research Area: Science and Technology
Country: kanpur, Uttar Pradesh, India
ISSN: 2984-9276 | IMPACT FACTOR: 8.27 Calculated By Google Scholar | ESTD YEAR: 2023
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.27 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: RJPN (IJPublication) Janvi Wave
