Value Stocks beat Growth Stocks: An empirical Analysis for the German Stock Market

expectations. After the burst of the 'dot-com bubble", a lot of companies of the so-called 'New Economy" went bankrupt. A similar phenomenon, happening at the moment, is the IPO of the social network Facebook. Since the first listing on May 18, the stock declined from USD 38 to U...

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Bibliographische Detailangaben
1. Verfasser: Schießl, Christian (VerfasserIn)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Hamburg Diplomica Verlag 2014
Ausgabe:1st ed
Schlagworte:
Zusammenfassung:expectations. After the burst of the 'dot-com bubble", a lot of companies of the so-called 'New Economy" went bankrupt. A similar phenomenon, happening at the moment, is the IPO of the social network Facebook. Since the first listing on May 18, the stock declined from USD 38 to USD 26.81, a minus of approximately 30 per cent. This means a decline in the market value of USD 34.5 bn in a few weeks. On 7 June 2012, the company trades at a 2012 P/E of 49.27 and a 2013 P/E of 41.20. These high ratios are reminiscent of the 'Neue Markt" valuations. A growth-oriented investor sets the future in the foreground. Not the current sales or earnings are important, but the expectation of strong sales- and earnings growth. Hence, growth stocks are characterized by high P/B ratios, high P/E ratios and low dividend yields. Growth stocks trade with a growth premium. An extreme example for growth investing would be the investment in a start-up company. These companies have typically a low amount of assets and often negative earnings, but have at the same time a high potential for growth. Positive examples of recent growth companies are Apple and Google. The future will show, if Facebook becomes a 'second Google" or a 'second EMTV".   Biographische Informationen Christian Schießl was born in Traunstein, in 1986. After studying at the Ludwig-Maximilians-University Munich (Bsc), he successfully completed his master's degree in banking and finance at the Otto-Friedrich-University Bamberg. His passion for stock markets has evolved from his early youth. The majors in his studies and the professional experience as an equity analyst caused the motivation for this study
Beschreibung:Description based on publisher supplied metadata and other sources
Beschreibung:1 online resource (72 pages)
ISBN:9783954895694
9783954890699

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