“Equity Valuation: Science, Art, or Craft?”
The Research Foundation of the CFA Institute has just published a research monograph co-authored by EDHEC Faculty member Frank J. Fabozzi, Sergio M. Focardi and Caroline Jonas.
In this publication entitled “Equity Valuation: Science, Art, or Craft?”, the authors point to the limits of widely used valuation techniques. The most important of these limits is the inability to forecast cash flows and to determine the appropriate discount rate. Another important limit is the inability to determine absolute value.
Abstract is available here