A Comparison of Dividend, Cash Flow, and Earnings Approaches to Equity Valuation(1)

A COMPARISON OF DIVIDEND, CASH FLOW, AND EARNINGS APPROACHES TO EQUITY VALUATION Stephen H. Penman Walter A. Haas School of Business University of California, Berkeley Berkeley, CA 94720 (510) 642-2588 and Theodore Sougiannis College of Commerce and... More

A COMPARISON OF DIVIDEND, CASH FLOW, AND EARNINGS APPROACHES TO EQUITY VALUATION Stephen H. Penman Walter A. Haas School of Business University of California, Berkeley Berkeley, CA 94720 (510) 642-2588 and Theodore Sougiannis College of Commerce and Business Administration University of Illinois at Urbana-Champaign Champaign, IL 61820 (217) 244-0555 January, 1995 Revision: April, 1996 We thank Pat O Brien, Jim Ohlson, Mike Oleson, Morton Pincus, Stephen Ryan, Jacob Thomas and Dave Ziebart for comments. Less