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 22: Pricing Closure and Asset-based Valuation/Pricing
Kerschner Family Chair in Finance Education
Professor Damodaran concludes the discussion on pricing using market regression before examining asset-based valuation methods, including liquidation and accounting valuation, and their application to private companies. The session covers explicit and implicit valuation impacts stemming from market illiquidity.
In this session, we started by closing the chapter on pricing, with pricing across an entire market (using a market regression). We then looked at asset based valuation: liquidation valuation, accounting valuation and sum of the parts valuation. Specifically, we focused on when it makes sense to value a company by valuing its assets and what pitfalls to avoid. If you are interested in a more extensive assessment of companies like United Technologies, you may find this reading useful:
We then started our discussion of the valuation of private companies by noting how the lack of a market price for a business can affect your valuation in implicit and explicit ways, and then arguing that the value you attach to a private business can depend on why/for whom you are doing the valuation.
Slides: https://nyu.box.com/s/hfivaq34l5klapbji6e3nm1cazuf7vvk