Class Logistics and Structure
1:15:51The Bermuda Triangle of Valuation
1:17:16Valuation Approaches (Continued) and First Steps on Intrinsic Value
1:17:50The DCF Big Picture and First Steps on Risk-Free Rates
1:17:38Finishing up Riskfree Rates and Moving on to Risk Premiums
1:17:02Implied Equity Risk Premiums
1:18:22Betas, Relative Risk and First Steps on Cost of Debt
1:17:16Cost of Capital Closure + First Steps on Cash Flows
1:19:56Tax Rates, Cap Ex and Working Capital
1:18:35FCFE Closure and First Steps on Growth
1:49:10Closure on Growth and First Steps on Terminal Value
1:33:01The Terminal Value
44:54Loose Ends in Valuation
1:20:42Last Loose Ends + First Steps on Storytelling
1:17:17More Storytelling and First Company Valuations
1:16:58Valuing the market and companies across the life cycle
1:17:09Valuing Declining, Emerging Market and Financial Service companies
1:34:58Intrinsic Value Closure and Pricing Beginnings
1:27:59Pricing Continued
1:17:10Tariff Talk
46:44Pricing Analytics and Peer Groups
1:16:15Pricing Closure and Asset-based Valuation/Pricing
1:17:37Loose Ends in Valuation
This session explores customizing discounted cash flow models, distinguishing equity versus firm valuation, and incorporating complex elements such as cash holdings, cross holdings, and other assets without double-counting, alongside growth pattern choices.
In this class, we started with a look at customizing discounted cash flows models to reflect the companies that we are valuing, talking about equity versus firm valuation and choice of growth patterns We then moved on to a discussion of cash holdings and why investors may discount that cash in the hands of some companies, to cross holdings, and why they are difficult to incorporate into value, and to other assets that you may consider adding on, because we have not considering them yet. On the latter, the key component to remember is not to double count an asset, by first counting its cash flow and then the value of the asset itself. Finally, I attach a weekly challenge for this week, built around terminal value. Please try it when you get a chance. It is simple but it will reinforce some key components of what we did in class.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/looseendsnew.pdf
Slides: https://nyu.box.com/s/hzczx1j4s66cen6ud4kawbhfvve7y5pz
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session13Ctest.pdf
The Terminal Value
Next · Lecture 14Last Loose Ends + First Steps on Storytelling