Valtech Valuation has been actively promoting academic study in valuation especially for Hong Kong and PRC focused researches. We also offer a good chance for interns to work with our experienced valuers and financial modelling specialist to explore research findings in valuation and financial industry. Valtech wish to contribute in cultivating talents who know not only on model applications but also developing new models and forming his/her own view by participating in data anlytics work. The research projects are not intended for profit or commercial use but to promote logical and innovative thinking based on available data. Valtech Valuation team are glad to suppot it to demonstate our social responsbility.
Today, we are glad to share the summary of research findings prepared by
Mr. Jeff Wong (Research Intern from HKUST 2022/23)
Summary Research Findings on P/E, P/B, P/S ratio and its relationship with Market Capitalization
Research Background and Objectives
This research is to compare P/E, P/B and P/S ratio with its relationship to market capitalization
Objectives:
- Observe the relationship between the multiples and market capitalization
- Compare which multiples have a better fit with market capitalization
- Figure out a better ratio that can facilitate company valuation
Conclusion
The results of the 31 December 2022 data is consistent with the result at 26 October 2022 that:
P/S ratio has the most relationship with market capitalization among P/S, P/B, P/E multiple
Last by not least, we would like to express our sincerest appreciation for all the hard work and dedication Jeff has shown during his time here as an intern. He has positive attitude and eagerness to take on new challenges have not gone unnoticed. We wish Jeff all the best as he moves forward in his career.
