This paper attempts to investigate the correlation of 12 month abnormal returns and the fundamental value of stocks in theSwedish stock market between the year 2000-2011. Also, the paper tries to apply and evaluate the concept of the margin ofsafety. In estimating the fundamental value we use the Residual Income Valuation model and three different estimationapproaches of the beta coefficient in order to correct for financial and operational biases. We find that our different portfoliosearn abnormal returns. However, this could be explained by the size effect and P/B effect.

This study tests two financial valuation models empirically by valuing three stocks from three industries, with the purpose of studying how well valuation models work empirically and to make a forecast. The models which will be tested are Residual Income Valuation and discounted cash flow. Nine stocks will be picked strategically from the Swedish stock market and additional analysis will follow in the analysis chapter.Based on analysis and valuation, the commodities industry has decent valuation as the healthcare industry is undervalued thanks to the high valuation of AZN. The energy industry has low value due to the capital intensive nature of the industry. When it comes to the models and their practical implementation, DCF has been the most problematic to apply empirically whereas RIV was better but it still shows extreme values, which teaches the student the clear difference between theory and empiri..

This study investigates whether the permanent measurement bias (PMB) has changed over time for Swedish companies listed on the Stockholm Stock exchange at least one year during 1996-2000 or 2005-2010. By using the Residual Income Valuation-model the markets' implicit value on PMB is generated through reversed engineering, as values for all variables except PMB are entered such as the market perceived them at the specific valuation date each year. This implicit value is classified into industries and then sorted by their median. Statistical tests are performed to see if there is a difference between the industry median and the accounting-based values on PMB. The difference from period one to period two is also statistically tested for.The study finds that the implicit values on PMB have changed somewhat between the periods; however the fluctuations are not statistically significant.

This thesis explores some issues regarding estimations of the cost of capital on the Stockholm Stock Exchange through reverse engineering of the Residual Income Valuation model and through usage of the Capital Asset Pricing Model. Previous studies are in conflict of whether the risk premium changes considerably over time or not. Furthermore, the risk premium estimated by CAPM tends to be fairly stable. In this study, reverse engineering of the cost of capital implied by analysts? forecasts shows a significant difference in the risk premium over time.

Objective: The study will identify where conflicts between SMEs and the Annual ReportsAct exists to find out if there is a need for adaptation of Swedish accounting to achieveinternational comparability.Method: A descriptive method was used to make the regulations in IFRS for SMEs and ÅRLequivalent and to observe the differences between the regulations a comparative method wasused. After this the conflicts could be sorted out with the help of the former so called ?IASinvestigation?.The conflicts and differences then were categorized into the approach theyrelated to, withFrame of reference: The frame for the study is recognition and valuation for collecting andanalysing the data. The approaches are presented for the balance sheet and income statementapproaches as they form the basis for analysis. Annual Reports Act, the EG-directives and theK3-projects are described as they have a central role in the background to the study andfurther understanding of the data.

This study examines the equity cost of capital between two periods distinguished by substantial differences in IPO activity. In light of the stemmed IPO flow to the Swedish stock exchange in 2012, this study regards the conjecture that the IPO count is related to the prevailing cost of equity capital for certain periods. By application of the Residual Income Valuation model the cost of equity capital is abstracted from sampled stock prices and compared at two points in time for which extreme highs and lows of IPO activity were observed. Using randomized samples from 1999 and 2012, significant differences between the estimated costs of capital are established. The findings indicate that the equity cost of capital, much as it may help influence, nevertheless plays a subordinated role in the going-public decision..

A debate in finance is whether a random investment gives the same return as carefully choose and valuing an amount of shares to invest in. Stock valuating Stock valuation is often done by fundamental valuation models, based on the company's underlying character, which tries to put a correct price on the stock. Today there are several different valuation models that can be used for this purpose. Since valuation models are only mathematical, equity research is underpinned by more subjective assessments about the company and its future.The purpose with this thesis is to describe which valuation models that are used by professional stock analysts, but also to see if the reliability on the equity research is affected by the used model to valuing the company. Furthermore, we want to see if the job that?s been done to understand the company, measured by the equity research quality, impact the reliability on the equity research.In this thesis, we have, to achieve our purpose, conducted a quantitative content analysis of 164 equity research done by professional analysts at firms listed on the Stockholm Stock Exchange. With basis in previous research, we have developed a method for determining the valuation model that is used in the equity research, the reliability on the equity research and a framework for assessing the quality of the equity research.In the theoretical framework the valuation models involved in our study are described, previous research on the reliability on the equity research and their practical use.

Lämpligheten i att redovisa immateriella tillgångar har diskuterats länge inom forskningen med varierande åsikter. Förespråkare för en mer omfattande redovisning av immateriella tillgångar menar att det bidrar med ökad relevans i finansiella rapporter, medan andra hävdar att en sådan redovisning skadar redovisningens trovärdighet på grund av bristande verifierbarhet. Syftet med denna studie är att undersöka om en redovisning av immateriella tillgångar behövs för att främja relevansen i den externa redovisningen. Genom en kvantitativ undersökning av Stockholmsbörsen utvärderas hur redovisade immateriella tillgångar motverkar diskrepansen mellan bokförda värden och marknadsvärden som uppstår genom konservativa redovisningsprinciper. Studiens resultat tyder på att immateriella tillgångar inte märkbart främjar relevansen i finansiella rapporter, samtidigt som en värdering från modellen om residual income gör det i högre utsträckning.

This study examines the equity cost of capital between two periods distinguished by substantial differences in IPO activity. In light of the stemmed IPO flow to the Swedish stock exchange in 2012, this study regards the conjecture that the IPO count is related to the prevailing cost of equity capital for certain periods. By application of the Residual Income Valuation model the cost of equity capital is abstracted from sampled stock prices and compared at two points in time for which extreme highs and lows of IPO activity were observed. Using randomized samples from 1999 and 2012, significant differences between the estimated costs of capital are established. The findings indicate that the equity cost of capital, much as it may help influence, nevertheless plays a subordinated role in the going-public decision..

Background: The difference between the market value and the book value of the companies has dramatically increased. One explanation is that the inflow of capital on the market has increased. Another explanation is that companies have a larger share of intellectual capital. The question is how this has influenced the company-valuator's use of valuation-models? Purpose: The purpose of this study is to find out what relevance the substance valuation model has, the DCF-model has, and also discover new valuation-models, among company-valuators.

Background: Associated with the change in the regulations in 2009 concerning how goodwill should be handled in the acquisitions, brand valuation is increasingly recognized. Goodwill will now be identified and the brand will therefore be separated to be individually evaluated. The valuation has a problem with a number of factors that will influence the choice of method, to obtain a reliable value Aim: The purpose of this study is to examine the method used for brand valuation associated with the acquisition situations. In addition, it aims to gain a better understanding of brand valuation and its problems.Method: The study has a qualitative basis, where three key people of brand valuation have been interviewed. These work as valuation specialists at various accounting firms, this to get answers that could be compared.

My essay is concerned with intercultural leadership and practical knowledge. The essay is about ethical dilemmas and the diversity of issues we face constantly at the preschool. In my story I examine the different views of knowledge and the opportunities to lead people in an intercultural way, and how they relate to each other. I start by looking at the ethical ideas that form the basis for our actions and our view of knowledge. Then, I examine how the practical wisdom guides the ethical dilemmas that arise at the preschool.

The purpose of this master thesis is to map and analyze the appropriate valuation approaches used for Intellectual Property rights and develope a model for valuing patents. This project has been executed on behalf of Electrolux?s Group Intellectual Property and is intended to be used for managerial purposes.Project limitations include patents that doesent concern technology oriented products and services, real option methods, financial forecasts, decisions concerning patents taken by the R&D division, patent applications in general and taking into account unexpected future management decisions regarding patents.Electrolux?s Intellextual Property team applies, manages and protects the groups Intellectual Property rights including patents, designs and trademarks. With an increased globalization and the rise of emerging markets, incentives have increased further to protect and safeguard the group?s innovations.Mainly there are three different valuations approaches for valuing intellectual property rights, these include the income based approach, cost base approach and market based approach.

Computers and business systems are used more frequently in a world where IT gradually is taking over. This is also true when it comes to the real estate valuation process where actors on the Swedish real estate market are using automatic valuation systems for real estate appraisal. But the real estate agents have not yet seen the charm in using these automatic valuation systems for real estate appraisal. Can the real estate agents also use the automatic valuation systems? We developed our three main subjects: the valuation process, an automatic valuation system and the real estate market with assistance from scientific articles.

Purpose Based on the new comprehensive income due to changes in IAS 1, the authors aim to describe how a listed corporate accounting is affected by IAS 1 and the new income statement.Methodology This study uses an inductive approach with a combination of qualitative and quantitative data, using financial rapports from the investment company Latour. This case study is based on Latour?s all published financial statements under the period 2008 to 2012.Result The study resulted in different observations of Latour's operational and financial performance, share price trends as well as ratios. The study's authors can see that Latour's net income and comprehensive income differ due to changes in IAS 1. They can also observe the effect of clean surplus in Latour?s income statement.