naa a22 4500 510735746 CHVBK 20180411083009.0 cr unu---uuuuu 180411e20131201xx s 000 0 eng 10.1007/s11573-013-0684-2 doi (NATIONALLICENCE)springer-10.1007/s11573-013-0684-2 Valuing high technology growth firms [Elektronische Daten] [Jan Klobucnik, Soenke Sievers] For the valuation of fast growing innovative firms Schwartz and Moon (Financ Anal J 56:62-75, 2000), (Financ Rev 36:7-26, 2001) develop a fundamental valuation model where key parameters follow stochastic processes. While prior research shows promising potential for this model, it has never been tested on a large scale dataset. Thus, guided by economic theory, this paper is the first to design a large-scale applicable implementation on around 30,000 technology firm quarter observations from 1992 to 2009 for the US to assess this model. Evaluating the feasibility and performance of the Schwartz-Moon model reveals that it is comparably accurate to the traditional sales multiple with key advantages in valuing small and non-listed firms. Most importantly, however, the model is able to indicate severe market over- or undervaluation from a fundamental perspective. We demonstrate that a trading strategy based on our implementation has significant investment value. Consequently, the model seems suitable for detecting misvaluations as the dot-com bubble. Springer-Verlag Berlin Heidelberg, 2013 Schwartz-Moon model nationallicence Market mispricing nationallicence Empirical test nationallicence Company valuation nationallicence Trading strategy nationallicence Klobucnik Jan Cologne Graduate School in Management, Economics and Social Sciences, University of Cologne, Richard-Strauss-Str. 2, 50931, Cologne, Germany aut Sievers Soenke Accounting Area, University of Cologne, Albertus-Magnus-Platz, 50923, Cologne, Germany aut Journal of Business Economics Springer Berlin Heidelberg 83/9(2013-12-01), 947-984 0044-2372 83:9<947 2013 83 11573 https://doi.org/10.1007/s11573-013-0684-2 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11573-013-0684-2 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Klobucnik Jan Cologne Graduate School in Management, Economics and Social Sciences, University of Cologne, Richard-Strauss-Str. 2, 50931, Cologne, Germany aut NATIONALLICENCE 700 1- Sievers Soenke Accounting Area, University of Cologne, Albertus-Magnus-Platz, 50923, Cologne, Germany aut NATIONALLICENCE 773 0- Journal of Business Economics Springer Berlin Heidelberg 83/9(2013-12-01), 947-984 0044-2372 83:9<947 2013 83 11573 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer