International Review of Business Research Papers Vol. 6. No. 2. September 2015 Issue. Pp. 63 – 76 EMH, Earning Multiples and Common Stock Valuation: The Case of Dhaka Stock Exchange Mohan L Roy* and Mohammad Ashrafuzzaman** This study examines the effectiveness of modular uses of financial data in determining common stock value by testing publicly available EPS, P/E, P/NAV etc. from December 2009 to January 2014. It found the models failed to predict stock price suitably. An unusual difference was found lying between intrinsic value, determined by multiples models, and actual price. Pragmatically, analysts have little scope to verify publicly available information, which believably improvised and serves common investors as mother of generic delusion. Key words: DSE, Market efficiency, EPS, Earning multiples. Field of Research: Accounting & Finance 1. Introduction The retrospect of Bangladesh Stock Market formally began in 1990 and thus reasonably its functional perspective does not restrain a mature-efficient operation. Under the purview of Securities and Exchange Commission (SEC), the two stock exchanges, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) come around to silver jubilant. Though DSE began operation a few decades before the formal launching of the CSE‟s operation, on market capitalization and efficient operation, the duo run over the same line of equation as they have been growing older. Turnover performance in typical security numbers and money worth let people perceive equally likely as market capitalization and efficiency of maturity. All investment bankers, brokerage houses, floating traders and participants apparently, not confidently, help investors by providing liquidity and operational efficiency, to some extent, but virtually it is far behind to promote capital flows and reduce transaction costs. Initiatives for market orientation using fundamental and technical analyses most possibly have been stayed far-off the door steps of market participants that makes the price discovery and valuing stocks independently difficult. Monitoring stock issuers activity, insiders‟ dishonest trade, the SEC, the legislative authority has directives such as imposing conditions and sanctions, penalizing the misnomers, etc., but not so effective as expected for an emerging market causes it‟s all efforts depart in vain. Operational inefficiency, lack of coordination among the originations, political instability and weak authoritative power caused the young aged markets to experience two massive setbacks 1 (1996 and 2011) in short history. Albeit in the 1990s there had been a severe fiasco in the share market elsewhere, for example, in Bombay stock Exchange, but the natures of the market disaster and magnitude of the consequences in Bangladesh were rather diverse. In the later event (2011), even if the common market participants were more tuned into the nature, working risk conditions in the trading trend failed to perceive the ultimate consequences of the stock market crash. *Mohan L Roy, Associate Professor, Finance & Accounting, IBAIS University, Dhaka.mohanroy@msn.com ; **Mohammad Ashrafuzzaman, Lecturer, Department of Accounting, Bangladesh University of Business & Technology (BUBT),Dhaka. Email: ashraf10173@yahoo.com