Beta alternatives for DCF
CAPM beta for some companies is skewed due to one-off company-specific events. And the skew can sometimes be substantial (when R2 is low).
In this case, other beta measures should be used for the model.
Example: sector-average Beta, standard deviation of stock price relative to the index or accounting earnings volatility.
How do you calculate your Betas?
Posted Nov 1, 2025, 1:17 PM UTC
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