The firm’s beta ratios, its market value to book value, its current price to earnings ratio and the historical growth rate in earning per share are identified by Moore & Beltz (2002) as possessing strong influence on the equity price of the firm. They also argue that the identified factors have varying effects on the price and the effects vary from time to time, sector to sector and even from firm to firm within the same industry. For instance, they argue that equity prices of individual firm in heavy industries (chemical, petroleum, metal and manufacturing) are exclusively influenced.
