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
1:17:37Tax Rates, Cap Ex and Working Capital
This session examines the capitalization of lease commitments and R&D expenses, their impact on valuation, and key issues in computing after-tax cash flows, including appropriate tax rates for money-losing companies and forensic accounting considerations.
In this session, we began by continued with our discussion of why we capitalize lease commitments and R&D expenses, and how they affect valuation inputs. We continued our discussion of cash flows, by first putting to rest some final issues on earnings, including the tax rate to use in computing after-tax cash flows and dealing with money losing companies. In the process, we did look at what to do about accounting fraud, and while the answer is not much, there may be a role for forensic accounting. To be honest, most forensic accounting books are designed for valuation morticians, but here are a couple that you may find useful: Finally, if you want to take apart a company’s financial statements, looking for clues on profitability, you might find my most recent data update post useful:
Cost of Capital Closure + First Steps on Cash Flows
Next · Lecture 10FCFE Closure and First Steps on Growth