Resumen

TELLEZ PEREZ, Julio. The efficiency of capital multiples: Case of Mexico. Contad. Adm [online]. 2019, vol.64, n.4, e124.  Epub 12-Mayo-2020. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2018.1651.

Capital multiples are financial ratios widely used by financial analysts for the purpose of making investment decisions in shares (S) of companies listed in stock markets. The two main indicators are the share price-to-earnings (P/E) and the market value to book value (P/B). Both multiples have the market perspective with respect to the book value of net income and the total equity as a common factor. A sample of 30 companies listed on the Mexican stock exchange between 2008 and 2016 (9 years) was taken, establishing three analysis periods of 3 years each depending on the volatility of the Mexican economy measured through the index of global economic activity (IGAE for its acronym in Spanish). The first was called crisis (1), the second recovery (2), and the third expansion (3). In order to find the possible association of P/E and P/B with S, the generalized method of moments (GMM) was used for the estimations, finding that P/B presents the highest relationship with S in the 3 economic periods, while P/E only presents a significant relationship in periods (2) and (3) concluding that this measuring device is very sensitive to economic changes, whereas P/B is robust and does not lose significance in the face of economic volatility.

Palabras llave : Valuation; Financial analysis; Multiples; Volatility.