Model Design

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1.	Demystifying Mulitple Valuation Models The benefits of multiple valuation models (MVMs) depend on the availability of less than perfectly correlated factors with statistically significant information correlations. This article defines MVMs, discusses the misconceptions concerning MVMs, and provides guidelines on constructing an MVM. Author: Richard O. Michaud. Publication: Financial Analysts Journal. January/February 1990.
2.	A Scenario-Dependent Dividend Discount Model: Bridging the Gap Between Top-Down Investment Information and Bottom-Up Forecasting The Dividend Discount Model is a tool to increase the information coefficient, not a way to improve the information coefficient of Dividend Discount Model results. Author: Richard O. Michaud. Publication: Financial Analysts Journal. November-December, 1985.
3.	Valuation Model Bias and the Scale Structure of Dividend Discount Returns This paper reports on the performance history of standard dividend discount models and an examination of the relationship of the forecasting characteristics and scale structure of the models. Author: Richard O. Michaud. Publication: The Journal of Finance. Spring 1982.

Model Design Articles