Use 12% return on the market

Compute Target's required rate of return using the CAPM. Using the constant growth model (dividend growth model), calculate the value of Targets stock.Is the stock overvalued or undervalued in the market? How can you tell?

Zacks Rank: 0 3-Hold Target Corporation (TGT) (Delayed Data from NYSE) $206.01 USD +0.44 (0.21%) Updated Apr 23, 2021 04:02 PM ET Style Scores: 0 B Value A Growth | A Momentum | A VGM Industry Rank: 0 Bottom 4% (244 out of 254) Industry: Retail - Discount Stores Add To Portfolio View All Zacks #1 Ranked Stocks Trades from $1 Quote Overview Enter Symbol a Price and EPS Surprise Chart 1 Month 3 Months YTD Stock Activity Key Earnings Data 205.94 6.84% EPS Surpriset 203.92 Prige 2 2.22 206.80 Earnings ESPO Most Accurate Est Current Qtr Est Current Yr Est Exp Earnings Date 2.07 103.86 Open Day Low Day High 52 Wk Low 52 Wk High Avg. Volume Market Cap Dividend 8.66 210 205 200 195 190 185 180 175 170 210.86 *SM05/19/21 Charts by ZACKS Feb Mar Apr 2,877,851 102.72 B 2.72 ( 1.32%) 1.01 Prior Year EPS 9.42 Exp EPS Growth (3-5yr) 10.21% Forward PE 23.80 PEG Ratio 2.33 Interactive Chart | Fundamental Chart Beta Zacks Rank: 0 3-Hold Target Corporation (TGT) (Delayed Data from NYSE) $206.01 USD +0.44 (0.21%) Updated Apr 23, 2021 04:02 PM ET Style Scores: 0 B Value A Growth | A Momentum | A VGM Industry Rank: 0 Bottom 4% (244 out of 254) Industry: Retail - Discount Stores Add To Portfolio View All Zacks #1 Ranked Stocks Trades from $1 Quote Overview Enter Symbol a Price and EPS Surprise Chart 1 Month 3 Months YTD Stock Activity Key Earnings Data 205.94 6.84% EPS Surpriset 203.92 Prige 2 2.22 206.80 Earnings ESPO Most Accurate Est Current Qtr Est Current Yr Est Exp Earnings Date 2.07 103.86 Open Day Low Day High 52 Wk Low 52 Wk High Avg. Volume Market Cap Dividend 8.66 210 205 200 195 190 185 180 175 170 210.86 *SM05/19/21 Charts by ZACKS Feb Mar Apr 2,877,851 102.72 B 2.72 ( 1.32%) 1.01 Prior Year EPS 9.42 Exp EPS Growth (3-5yr) 10.21% Forward PE 23.80 PEG Ratio 2.33 Interactive Chart | Fundamental Chart Beta