Valuation

Course Description

NYU's Stern Business School Professor Aswath Damodaran teaches Valuation.

Lectures

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   Lecture 1 - Introduction to Valuation

   Class Introduction

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   Lecture 2 - Approaches to Valuation

   Approaches to Valuation
   Introduction to DCF valuation
   Firm vs Equity Valuation

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   Lecture 3 - Valuation Riskfree Rates

   The Big Picture of Valuation
   Riskfree Rates
   - Necessary Ingredients
   - What if the government is not default free?

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   Lecture 4 - Equity Risk Premiums

   Equity Risk Premiums
   - What are they?
   - Historical Risk Premiums
   - Country Risk Premiums
   - Company Exposure to Country Risk
   - Implied Equity Risk Premiums

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   Lecture 5 - Equity Risk Premia and Bond Default

   Equity Risk Premia and Bond default spreads
   Equity Risk Premia and Real Estate Cap Rates
   Implied premia for emerging markets
   Betas
   - The problem with regression betas
   - Solutions

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   Lecture 6 - New ERP for September 2009

   Updated ERP for September 2009
   The Cost of Debt
   Why we use market value debt ratios.
   Cost of Capital - From one currency to another.

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   Lecture 7 - Hybrid Securities Measurings Earnings

   Hybrid Securities
   Measuring Earnings
   - Updated values
   - Corrrecting for leases
   - Correcting for R&D

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   Lecture 8 - Accounting Fraud

   Accounting fraud
   - Dealing with money losing companies
   - Tax rates
   - Cap Ex

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   Lecture 9 - Working Captial

   Working Capital: Definition and Forecasting
   Cash flow to Equity: Dividends, Earnings and FCFE
   Expected growth
   - The problems with historical growth
   - Analyst and Management forecasts of growth
   - Fundamental Growth

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    Lecture 10 - Fundamental Growth

    Fundamental Growth
    - EPS versus Net Income
    - Organic vs Efficiency Growth
    -Operating Income Growth
    -Growth with money losing companies
    Terminal Value
    -Why multiples don't work
    - Consistency rules (Growth rate, Length of growth, Excess Returns)

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    Lecture 11 - Terminal Value

    Terminal value: Final thoughts
    Picking the "right" DCF model
    Loose ends in valuation
    - The value of cash
    - The value of cross holdings

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    Lecture 12 - Other Missed Assets

    Other missed assets?
    The value of complexity
    Defining debt: Cost of capital versus Debt to net out...
    Equity Options

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    Lecture 13 - Valuation Examples

    Valuation examples
    - Implied growth rate & Target prices
    - Financial service firms: pre and post crisis
    - Valuing the S&P 500
    - Negative FCFE and dilution effects

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    Lecture 14 - Valuing Corporate Governance Lambdas

    Valuing Corporate Governance
    Lambdas and value
    The Dark Side of Valuation
    - Valuing young companies

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    Lecture 15 - Valuing Companies with R&D

    Valuing companies with R&D
    Dealing with uncertainty in valuation
    Valuing declining and distressed companies
    Macro effects on valuation
    Relative Valuation
    - Introduction
    - Definition and Descriptive Tests

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    Lecture 16 - Analysis and Application of the PE Ratio

    Analysis and Application Tests
    The PE Ratio
    - Definiton
    - Descroption
    - Deternimnats

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    Lecture 17 - PE Ratios continued

    More on PE ratios
    - Comparing PE ratios across markets
    - Comparing PE ratios across companies
    - Cross sectional regressions
    
    PEG Ratios
    - Definition and Determinants

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    Lecture 18 - PEG Ratios

    PEG Ratios- Applicaitons
    Value Multiples
    - EV/EBITDA and determinants
    Price to Book Ratios

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    Lecture 19 - Visualizing Cheap Companies

    Visualizing cheap companies - PBV versus ROE
    EV to Book Capital Ratios
    Finding the companion variable
    PS and EV/Sales Ratios
    Brand Name Value

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    Lecture 20 - Option Pricing Redux

    Option Pricing Redux
    The Option to Delay
    - Valuing Patents
    - Valuing undeveloped natural reserves

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    Lecture 21 - Valuing Equity as an Option

    Final thoughts on valuing equity as an option
    Acquirers' Anonymous: Seven Steps to Sobriety
    - Evidence on acquisitions
    - Acquisition tests

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    Lecture 22 - Acquisition Tests, Price v. Value

    More acquisition tests
    Price versus Value Enhancement
    Pathways to Value Enhancement
    The value of control

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    Lecture 23 - Closing Thoughts on Value Enhancement

    Closing thoughts on Value Enhancement
    Dante meets DCF: Ten Sins in Valuation
    Project Findings