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 19: Pricing Continued
Kerschner Family Chair in Finance Education
Professor Damodaran dissects the analytical underpinnings of equity pricing multiples, including PEG, PBV, and EV/EBITDA. The session critically examines the process of identifying fundamental mismatches between valuation metrics and underlying company performance as a basis for investment screening.
In this session, we continued with our discussion of pricing, starting with the analytics that drive PEG, PBV, EV/EBITDA and revenue multiples. During the session, I played the role of a naive equity research analyst, using sloppy pricing to push buy recommendations on stocks in a number of sectors, based purely on the level of multiples (low PE, low PBV etc.) and asking for pushback. I The bottom line, though, is that most companies that look cheap deserve to be cheap. The key to pricing is finding a mismatch between the pricing and the fundamentals (low PE & high growth, low PBB and high ROE, low EV to Sales and high margins). It is the basis for much of equity research, and takes the form of screens. If you are interested, I have a post that expands on the notion of screening.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/relval2test.pdf
Slides: https://nyu.box.com/s/hypc3jgk9jpsg436eisuvkb1bt9pgy4b
Session 20: Tariff Talk
Next · Lecture 5Session 18: Intrinsic Value Closure and Pricing Beginnings
Seminar notes & discussion
No public seminar notes on this lecture yet.