r/personalfinance•
Vladko_7

Beta alternatives for DCF

Investing

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, 1:19 PM UTC

11
Loading comments…