Economics Homework Help

research and analyze an assigned publicly-traded company

Number of Pages doesn’t matter. Need the calculations

Target Corporation (TGT)

Valuation:

Relative Valuation or Price Multiple Models

1. Relative earnings valuation method: P/E ratio or earnings multiple, PEG ratios8

2. Relative revenue valuation method: P/S ratio

3. Relative cash-flow valuation method: P/EBIT, P/EBITDA, P/CFO, EV/EBITDA

ratios10

4. Relative asset valuation method: P/B or B/M ratios.

Dividend Discount Models

Constant Growth DDM
Discounted Cash Flow (DCF)

Fundamental analysis:

is an investment approach that uses existing economic information,

such as historical financial statements or different fundamental information about a

company, to make investment decisions.

Using the ‘Top down’ and the ‘Bottom up’ approach