Session 22: Pricing Closure and Asset-based Valuation/Pricing
1:17:37Session 21 (UG) and Session 19 (MBA): Pricing Analytics and Peer Groups
1:16:15Session 20: Tariff Talk
46:44Session 19: Pricing Continued
1:17:10Session 18: Intrinsic Value Closure and Pricing Beginnings
1:27:59Session 17: Valuing Declining, Emerging Market and Financial Service companies
1:34:58Session 16: Valuing the market and companies across the life cycle
1:17:09Session 15: More Storytelling and First Company Valuations (FINC-UB)
1:16:58Session 14: Last Loose Ends + First Steps on Storytelling (FINC-UB)
1:17:17Session 13: Loose Ends in Valuation (FINC-UB)
1:20:42Session 12: The Terminal Value (FINC-UB)
44:54Session 11: Closure on Growth and First Steps on Terminal Value (FINC-UB)
1:33:01Session 10: FCFE Closure and First Steps on Growth (FINC-UB)
1:49:10Session 9: Tax Rates, Cap Ex and Working Capital (FINC-UB)
1:18:35Session 8: Cost of Capital Closure + First Steps on Cash Flows (FINC-UB)
1:19:56Session 7: Betas, Relative Risk and First Steps on Cost of Debt (FINC-UB)
1:17:16Session 6: Implied Equity Risk Premiums (FINC-UB)
1:18:22Session 5: Finishing up Riskfree Rates and Moving on to Risk Premiums (FINC-UB)
1:17:02Session 4: The DCF Big Picture and First Steps on Risk-Free Rates (FINC-UB)
1:17:38Session 3: Valuation Approaches (Continued) and First Steps on Intrinsic Value (FINC-UB)
1:17:50Session 2: The Bermuda Triangle of Valuation (FINC-UB)
1:17:16Session 1: Class Logistics and Structure (FINC-UB)
1:15:51Session 18: Intrinsic Value Closure and Pricing Beginnings
Kerschner Family Chair in Finance Education
Professor Damodaran explicates the mechanisms of intrinsic value convergence, the role of Monte Carlo simulations in commodity valuation, and introduces relative valuation frameworks, including the consistent definition and estimation of pricing multiples.
In the context of valuing commodity companies, I talked about how Monte Carlo simulations can help deal with uncertainty. If you decide to go that route, you can use Crystal Ball (an add on to Excel and freely available to Stern students) to make your excel spreadsheet valuation into a simulation. Finally, in the context of talking about value vs price, and the efficient market view of the gap, I mentioned a documentary on efficient market investing. Here is the WSJ article linking to it:
We then moved on to the gap, the different views of the gap and why that gap might or might not close.
In the second part of the class, we turned to pricing, and laid the framework for thinking about multiples as standardized prices, and why it is critical that we make sure that they are consistently defined and uniformly estimated.
Session 19: Pricing Continued
Next · Lecture 6Session 17: Valuing Declining, Emerging Market and Financial Service companies