Research and publications

A Note on the Valuation of Asset Management Firms

Market capitalisation relative to assets under management is a metric often used to value asset management firms. The dividend discount model of HUBERMAN (2004) implies that cross-sectional variations in this metric are explained by cross-sectional differences in operating margins, yet that does not accord with the evidence from our data set.

Author(s) :

Juha Joenväärä, Bernd Scherer

Summary :

Market capitalisation relative to assets under management is a metric often used to value asset management firms. The dividend discount model of HUBERMAN (2004) implies that cross-sectional variations in this metric are explained by cross-sectional differences in operating margins, yet that does not accord with the evidence from our data set.

Type : Working paper
Date : 05/06/2017
Keywords :

Asset Management