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Selecting a peer group of companies for valuation and outline of future research using machine learning
[K problému výběru porovnatelné skupiny podniků pro ocenění a nástin budoucího výzkumu s využitím strojového učení]

Author

Listed:
  • Veronika Staňková
  • Miloš Mařík

Abstract

This article deals with peer group selection for the purpose of the market valuation approach. The academic professional public does not agree on the optimal approach in respect of the peer group selection. Therefore, in this article we start with a synthesis of the current literature on this matter, including a description and discussion of the three main approaches, namely: (i) aggregated groups based on industry classification, (ii) search for fundamental indicators and (iii) alternative methods using the big data. Following is the explanation of machine learning applied in the finance and an outline of future research in which we want to verify the potential of machine learning algorithms in selecting a comparable group of companies.

Suggested Citation

  • Veronika Staňková & Miloš Mařík, 2020. "Selecting a peer group of companies for valuation and outline of future research using machine learning [K problému výběru porovnatelné skupiny podniků pro ocenění a nástin budoucího výzkumu s využ," Oceňování, Prague University of Economics and Business, vol. 13(3-4), pages 51-64.
    • Handle: RePEc:prg:jnloce:v:13:y:2020:i:3-4:id:2020_3_05:p:51-64
    DOI: 10.18267/j.ocenovani.254
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    References listed on IDEAS

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    1. Gerard Hoberg & Gordon Phillips, 2016. "Text-Based Network Industries and Endogenous Product Differentiation," Journal of Political Economy, University of Chicago Press, vol. 124(5), pages 1423-1465.
    2. Lee, Charles M.C. & Ma, Paul & Wang, Charles C.Y., 2015. "Search-based peer firms: Aggregating investor perceptions through internet co-searches," Journal of Financial Economics, Elsevier, vol. 116(2), pages 410-431.
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    More about this item

    Keywords

    Market valuation approach; Peer group; Machine learning; Ocenění tržním porovnáním; Porovnatelná skupina společností; Strojové učení;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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