Conduct stock valuations for Tesla using a set of techniques such as the Single-Index market model and

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Question:

Conduct stock valuations for Tesla using a set of techniques such as the Single-Index market model and Discounted Dividend Model (DDM).

Single-Index Market Model: The Single-Index market model is a method used to determine the expected return on a stock based on its sensitivity to movements in the overall market. This model assumes that the performance of an individual stock is correlated with the performance of the overall market. The formula for the Single-Index market model is as follows:

R(stock) = R(free) + beta(R(market) - R(free))

Where:

R(stock) is the expected return on the stock
R(free) is the risk-free rate of return
beta is the stock's beta coefficient, which measures its sensitivity to movements in the market
R(market) is the expected return on the market

To use this model to value Tesla, you would need to estimate the expected return on the overall market, calculate Tesla's beta coefficient, and estimate the risk-free rate of return. This information can be obtained from financial databases and reports.