arbiter
JournalsAccount

An Accounting-Based Measure of Valuation Uncertainty

Andrey Golubov & Theodosia Konstantinidi

The Accounting Review2026https://doi.org/10.2308/tar-2023-0399article
FT50UTD24AJG 4*ABDC A*
Weight
0.50

Abstract

Existing measures of valuation uncertainty are indirect or available for limited samples. We use an accounting-based valuation model to estimate a set of hypothetical intrinsic equity values and measure uncertainty by their spread. We show that our measure reflects both cash flow and discount rate uncertainty, explains price ranges in IPO prospectuses and M&A fairness opinions, and incrementally predicts various future outcomes indicative of uncertainty. An application of our measure to a popular asset pricing context yields new insights into the properties of the value premium. Overall, our paper demonstrates how accounting information can be used to summarize uncertainty about intrinsic equity value. Data Availability: Data used in the article are available from public sources cited in the text. JEL Classifications: M41; G12; G14.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.2308/tar-2023-0399

Or copy a formatted citation

@article{andrey2026,
  title        = {{An Accounting-Based Measure of Valuation Uncertainty}},
  author       = {Andrey Golubov & Theodosia Konstantinidi},
  journal      = {The Accounting Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.2308/tar-2023-0399},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

An Accounting-Based Measure of Valuation Uncertainty

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.