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Target (TGT) vs. Wal-Mart (WMT) 2011

In 2011, The Model Mill company created this post showing that there was no comparison between Target and Wal-Mart, with Wal-Mart dominating Target in...

Gordon Dividend Discount Model (DDM) versus FCFE Valuation Models

Two popular models for valuing equity are the DDM and FCFE models.  The DDM is sometimes referred to the Gordon constant growth model, because...

Valuation Multiples

To estimate a company’s stand-alone value, multiples can be used.  To apply multiples, first a peer group of companies is required, and these should...

The Problem With Using Beta (β) As A Proxy For Risk

The following is a brief list of definitions for beta from various textbooks and research papers.  Though brief, this is a representative sampling of...

A Clearer Understanding of Beta

In the spreadsheet below, beta is calculated for Apple (AAPL) using the S&P500 as the market return, and basing beta on 5 years of...