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
1:17:37Cost of Capital Closure + First Steps on Cash Flows
This session addresses the computation of the cost of debt, debt ratios, and the treatment of hybrid securities within a corporate valuation framework. It then introduces free cash flow analysis, distinguishing various types of cash flows and their implications for firm valuation.
In this session, we started with the cost of debt and computing debt ratios for companies and how to deal with hybrid securities.. If you are interested in getting updated default spreads (on the cheap or free), try the Federal Reserve site in St. Louis: These are spreads on indices created by rating, updated daily. Neat, right? For an even more detailed albeit less user-friendly space, try the NAIC and once you are on the site, go to search and type in F&G current spreads. The most updated version I found looks like this: They update every month, though it takes them about six weeks after the month ends to do this. We then moved on to earnings and cash flow’s and after a introduction to cash flows, I promised you a link to the post on Microsoft where I talk about the differences in free cash flows: We ended the class by noting that leases are debt, and while accountants should always treated them as such, they came to their senses in 2019. Start of the class test: Post class solution:
Betas, Relative Risk and First Steps on Cost of Debt
Next · Lecture 9Tax Rates, Cap Ex and Working Capital