Determinants of Stock Valuation Multiples: The Case of Listed Construction Companies in Vietnam
(Pages 2625-2634)Tuan Anh Dang1,*, Ha Son Ngo2, Chau Hanh Vu Do2, Phuong Minh Le3
1Lecturer, School of Banking and Finance, National Economics University, Vietnam. [Postal Address: 207 Giai Phong Road, Dong Tam Ward, Hai Ba Trung District, Hanoi, 11616, Vietnam].
2School of Advanced Education Program, National Economics University, Vietnam.
3School of Banking and Finance, National Economics University, Vietnam.
DOI: https://doi.org/10.55365/1923.x2023.21.281
Abstract:
The study examines the factors affecting stock valuation multiples, represented by the P/E and EV/EBITDA ratios, of listed construction firms in Vietnam for 2016 – 2020. The authors employed two regression models corresponding to each multiple. Since the calculation of the P/E ratio does not consider firms with negative profits in the fiscal year, 57 companies in the model for the P/E ratio and 75 companies in the model for the EV/EBITDA ratio are selected. After performing panel data regression and FGLS regression, the research results show that GDP growth, dividend payout ratio, financial leverage, profitability, liquidity, and Tobin’s Q ratio all have impacts on stock valuation multiples, which shows investors’ focus on financial risk, profitability, and efficiency of listed construction companies. Our results provide support for the fundamental factors affecting stock valuation, especially for the EV/EBITDA ratio.
Keywords:
Construction Industry, EV/EBITDA, P/E, Stock Valuation, Vietnam.
JEL Classification Code:
G11, G12, G14, D53, L74.
How to Cite:
Tuan Anh Dang, Ha Son Ngo, Chau Hanh Vu Do, Phuong Minh Le. Determinants of Stock Valuation Multiples: The Case of Listed Construction Companies in Vietnam . [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a281/
Licensee REF Press This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, provided the work is properly cited.