TY - JOUR
AU1 - Higgins, Huong
AB - The main purpose of this paper is to demonstrate a method to forecast stock price using analyst earnings forecasts as essential signals of firm valuation. The demonstrated method is based on the residual income model (RIM), with adjustment for autocorrelation. Over the past decade, the RIM has been widely accepted as a theoretical framework for equity valuation based on fundamental information from financial reports. This paper shows how to implement the RIM for forecasting and how to address autocorrelation to improve forecast accuracy. Overall, this paper provides a method to forecast stock price that blends fundamental data with mechanical analyses of past time series.
TI - Forecasting stock price with the residual income model
JF - Review of Quantitative Finance and Accounting
DO - 10.1007/s11156-010-0187-y
DA - 2010-06-23
UR - https://www.deepdyve.com/lp/springer-journals/forecasting-stock-price-with-the-residual-income-model-n7tB1T0Ua4
SP - 583
EP - 604
VL - 36
IS - 4
DP - DeepDyve
ER -