Accounting Valuation Models: A Short Primer

• Published in: Abacus (Sydney) Vol. 43; no. 4; pp. 429 - 437
• Main Author: BRIEF, RICHARD P.
• Format: Journal Article
• Language: English
• Published: Melbourne, Australia Blackwell Publishing Asia 01.12.2007; Accounting Foundation, University of Sydney; Blackwell Publishing Ltd
• Series: Abacus
• Subjects: Abnormal earnings growth; Accounting; Accounting methods; Accounting standards; Accounting valuation models; Business accounting; Business studies; Corporate finance; Earnings; Financial accounting; Income; Mathematical models; Profits; Residual income valuation; Residuals; Statistics; Studies; Valuation; Valuation methods

This note discusses basic issues related to residual income valuation (RIV) and abnormal earnings growth (AEG) models but has only scratched the surface of a complex subject. What clearly emerges from this ‘primer’ is the conclusion that AEG is a more complex valuation model than RIV. This complexit...