4
Measuring the value of media sentiment: A pragmatic view
Marion Munz
ABSTRACT
In today's online real-time environment, the news that carries material information affects the sentiment regarding the earnings multiple as it relates to stock prices. The sooner investors recognize that there is a news component embedded in the stock price, the sooner they will arm themselves with the necessary tools that would enable them to take corrective action if necessary. The old formulas used for valuing stock prices need serious revisions to incorporate the news sentiment as a critical variable.
Investors and traders alike must have the ability to act or react to fresh material information regarding investments and trades. The current online trading platforms offer just about every type of information related to stocks and equities in real time. However, there is an increasing need for tools that offer an ability to interpret real-time information, so investors and traders can make the best decisions possible.
News sentiment systems help to fill the gap in current stock price valuation formulas, because they can help to determine the extent of the valuation multiple allocated to a particular future earnings per share value to be reflected in the stock price.
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access