Behavioral Stock Valuation Using 3d Grouping

Abstract

The aim of this study is to test the valuation method in which in addition to the fundamental features of the stock, pay attention to investor sentiment and its impact on stock pricing. in this regard ,Fundamental information and stock prices of 95 manufacturing and industrial companies listed in the Tehran Stock Exchange during the years 2009 to 2013 are collected and valued using the behavioral model stock image and traditional models (residual income, discount dividend and free cash flow) .This research using panel data and regression equations developed for each model, has compared the performance of models based on Akaike(ACI) index. The results of the proposed model compared to traditional models implies less uncertainty of this model .The proposed behavioral model can explain the role of behavioral factors in stock pricing and helpful for stockholders in the active portfolio management because they can buy or sell their securities based on this model JEL classification codes: G12

Keywords

• Valuation
• Behavioral Finance
• Stock Image
• Residual Income
• Free Cash Flow to Equity