Comparison of the traditional stock valuation models with Ohlson's valuation model

Σ. Ν. Σπηλιώτης, Γεώργιος Α. Καραθανάσης


Traditional valuation models suggest that equity prices are determined by variables such as
dividends and growth in dividends. Ohlson (1995) and Feltham and Ohlson (1995) indicate that
equity prices are determined by book value and discounted future abnormal earnings. This
paper uses panel data analysis and equity prices from Athens Stock Exchange in order to
compare the explainability of the traditional and the more recent models of equity valuation.
The results show that the explainability of the Ohlson (1995) model is quite similar to that of
the traditional models even though in some cases Ohlson's model explainability appears to be


Valuation; Panel analysis; Mathematical models

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η δικτυακή πύλη της ευρωπαϊκής ένωσης ψηφιακή ελλάδα ΕΣΠΑ 2007-2013