Search results “Damodaran investment valuation”
Session 1: Introduction to Valuation
Lays out the rationale for doing valuation as well as the issues of bias, complexity and uncertainty that bedevil it.
Views: 411557 Aswath Damodaran
Aswath Damodaran | The Investment Valuation Guru | One Road Podcast
Aswath Damodaran is a Professor of Finance at the Stern School of Business at New York University, where he teaches corporate finance and equity valuation. He's been called Wall Street's "Dean of Valuation", and he sits down with One Road Research managing director, Peter Pham.
Views: 296 One Road Research
Aswath Damodaran: "Valuation: Four Lessons to Take Away" | Talks at Google
The tools and practice of valuation is intimidating to most laymen, who assume that they do not have the skills and the capability to value companies. In this talk, I propose to lay out four simple propositions about valuation. The first is that valuation is not an extension of accounting, insofar as it is not about recording the past but forecasting the future. The second is that valuation is not just modeling, where people put numbers into Excel spreadsheets and pump out values. A good valuation requires a narrative that binds the numbers together. The third is that valuing an asset or business is very different from pricing that asset or business, a difference that is often blurred in practice. The fourth is that luck plays a disproportionate role in whether you make money off your valuations. Put differently, you can do everything right and still walk away with nothing or worse at the end. About the Author I view myself, first and foremost, as a teacher. I do teach valuation and corporate finance not only to MBAs at Stern but to anyone who will listen (on iTunes U, online and on YouTube). I love to write books, teaching material and blog posts. After 30 years of teaching finance, I still find it fascinating as an interplay of economics, psychology and number crunching.
Views: 255911 Talks at Google
Aswath Damodaran on valuation and technology investing
ORIGINAL AIR DATE: APRIL 22, 2016 Boom Bust’s Edward Harrison interviews valuation guru Aswath Damodaran, economics professor at New York University. Aswath gives his favored public companies with lots of available public data, with specific commentary on higher growth companies like Tesla and Valeant. He also warns the increasing reliance by analysts and investors on non-GAAP reporting. Aswath then explains the mechanics behind using an equity risk premium calculation before going into his valuation thoughts for a number of high profile tech companies like Facebook, GoPro, Twitter, Amazon, Netflix and more. Check us out on Facebook -- and feel free to ask us questions: http://www.facebook.com/BoomBustRT https://www.facebook.com/harrison.writedowns Follow us @ https://twitter.com/AmeeraDavid http://twitter.com/edwardnh https://twitter.com/BiancaFacchinei
Views: 5206 Boom Bust
Aswath Damodaran – Laws of Valuation: Revealing the Myths and Misconceptions (FULL PRESENTATION)
Aswath Damodaran is the Kerschner Family Chair Professor of Finance at the Stern School of Business at New York University. He teaches the corporate finance and valuation courses in the MBA program. He received his MBA and Ph.D from the University of California at Los Angeles. His research interests lie in valuation, portfolio management and applied corporate finance. He has published in the Journal of Financial and Quantitative Analysis, the Journal of Finance, the Journal of Financial Economics and the Review of Financial Studies. He has also written four books on valuation (Damodaran on Valuation, Investment Valuation, The Dark Side of Valuation, The Little Book of Valuation), and two on corporate finance (Corporate Finance: Theory and Practice, Applied Corporate Finance: A User’s Manual). —— This presentation took place at Nordic Business Forum 2018 on 26.-27. September in Helsinki, Finland. The event gathered together 7500 CEOs, top executives, and entrepreneurs from over 40 countries. —— Nordic Business Forum 2019 will take place in Helsinki, Finland on 9 – 10 October. Tickets for Nordic Business Forum 2019: http://www.nbforum.com/2019 Website: http://www.nbforum.com Facebook: http://www.facebook.com/nbforum.fi Twitter: http://www.twitter.com/NBForumHQ Instagram: http://instagram.com/NBForumHQ LinkedIn: https://www.linkedin.com/company/nordic-business-forum
Session 7: Estimating Cash Flows
Goes through the steps in estimating cash flows, from measuring earnings to computing reinvestment and then on to cash flows (to both the firm and to equity).
Views: 74918 Aswath Damodaran
Session 20: Private Company Valuation
Examine the estimation challenges associated with valuing small or large privately-owned businesses.
Views: 29952 Aswath Damodaran
Mining Financial Modeling & Valuation Course - Tutorial | Corporate Finance Institute
Mining Financial Modeling & Valuation Course - Tutorial | Corporate Finance Institute Enroll in our Full Course to earn a certificate and advance your career: http://courses.corporatefinanceinstitute.com/courses/mining-industry-financial-model-valuation Master the art of building a financial model for a mining asset, complete with assumptions, financials, valuation, sensitivity analysis, and output charts. In this course we will work through a case study of a real mining asset by pulling information from the Feasibility Study, inputting it into Excel, building a forecast, and valuing the asset. -- FREE COURSES & CERTIFICATES -- Enroll in our FREE online courses and earn industry-recognized certificates to advance your career: ► Introduction to Corporate Finance: https://courses.corporatefinanceinstitute.com/courses/introduction-to-corporate-finance ► Excel Crash Course: https://courses.corporatefinanceinstitute.com/courses/free-excel-crash-course-for-finance ► Accounting Fundamentals: https://courses.corporatefinanceinstitute.com/courses/learn-accounting-fundamentals-corporate-finance ► Reading Financial Statements: https://courses.corporatefinanceinstitute.com/courses/learn-to-read-financial-statements-free-course ► Fixed Income Fundamentals: https://courses.corporatefinanceinstitute.com/courses/introduction-to-fixed-income -- ABOUT CORPORATE FINANCE INSTITUTE -- CFI is a leading global provider of online financial modeling and valuation courses for financial analysts. Our programs and certifications have been delivered to thousands of individuals at the top universities, investment banks, accounting firms and operating companies in the world. By taking our courses you can expect to learn industry-leading best practices from professional Wall Street trainers. Our courses are extremely practical with step-by-step instructions to help you become a first class financial analyst. Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections -- JOIN US ON SOCIAL MEDIA -- LinkedIn: https://www.linkedin.com/company/corporate-finance-institute-cfi- Facebook: https://www.facebook.com/corporatefinanceinstitute.cfi Instagram: https://www.instagram.com/corporatefinanceinstitute Google+: https://plus.google.com/+Corporatefinanceinstitute-CFI YouTube: https://www.youtube.com/c/Corporatefinanceinstitute-CFI
The Keystone Kops of Valuation: Lazard, Evercore and the TSLA/SCTY Deal
When Tesla announced its intent to buy Solar City, Elon Musk was exposed to charges of conflict of interest, since he controlled both companies. The boards of the two companies, aware of the potential for litigation, hired bankers (Tesla hired Evercore and Solar City hired Lazard) to value the two companies and their attempts at valuation are summarized in the Tesla prospectus. In this webcast, I take a look at these critical look at these valuations and conclude that even by the woeful standards of banking valuations, these fall short. Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/KeystoneKops.pdf Blog Post: http://bit.ly/2cH68Ny
Views: 14197 Aswath Damodaran
Session 21: Introduction to Real Options
This session covered the basics of options, starting with why real options are so attractive to analysts and investors: they allow you to add a premium to your DCF value. The two building blocks for real option value are learning (from what is going on around you or ongoing events) and adapting your behavior. There are three questions that underlie the use of real options. The first is recognizing when you are dealing with an option, with a payoff diagram being the give away. The second is looking for exclusivity which is what gives options value. The third is using an option pricing model, which is built on replication and arbitrage. We laid the foundations for all three questions today and will build on those. Slides: http://www.stern.nyu.edu/~adamodar/podcasts/valfall15/valsession21.pdf
Views: 11093 Aswath Damodaran
Session 3: DCF Overview and First Steps on Discount Rates
This class started with a look at a major investment banking valuation of a target company in an acquisition and why having a big name on a valuation does not always mean that a valuation follows first principles. After setting the table for the key inputs that drive value - cash flows, growth, risk, we looked at the process for estimating the cost of equity in a valuation. The key concept is that of a "marginal" investor, who is diversified and looking at risk through that investor's eyes. We spent the rest of the session talking about what should be (but no longer is) the simplest input into the process: the risk free rate. Start of the class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/kennecott.pdf Slides: http://www.stern.nyu.edu/~adamodar/podcasts/valUGspr17/session3.pdf Post class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session3test.pdf Post class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session3soln.pdf
Views: 24086 Aswath Damodaran
Session 20: Private Company Valuation
In today’s class, we completed the last few strands of sum of the parts valuation (not pricing) and then started on the discussion of private companies. After laying down the base principle, which is that the fundamentals that drive private company value are the same that drive public companies, we began looking at why motive matters with private company valuation, since the same business can be worth different amounts to different buyers. In terms of specifics, we looked at the challenges of undiversified buyers, illiquidity and key person effects in private-to-private transactions and how they all go away when the buyer is a public company. Next session, we will start on valuing/pricing IPOs and then move on to real options. Start of the class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/pvtcotest.pdf Slides: http://www.stern.nyu.edu/~adamodar/podcasts/valfall16/valsession20.pdf Post class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session20Atest.pdf Post class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session20Asoln.pdf
Views: 5201 Aswath Damodaran
Real Estate -  Forms of Investment and Valuation Methods
Get our latest video feeds directly in your browser - add our Live bookmark feeds - http://goo.gl/SXUApX For Google Chrome users download Foxish live RSS to use the Live Feed - http://goo.gl/fd8MPl Academy of Financial Training's Video Tutorials on CFA® Level 1 2014 -- Alternative Investments Here, we continue with the topic of forms of RE investments. Further we understand in detail the varied methods used to Value RE Investments. For Ad Free Viewing Please visit : http://goo.gl/NgJSjn SUBSCRIBE for Updates on our Upcoming Training Videos Visit us: http://www.ftacademy.in/ About Us: Academy of Financial Training is training services company that specializes in providing a complete range of finance training services and solutions Since its incorporation AFT has trained more than 5,000 attendees in various finance domains, and is serving marquee Fortune 500 clients, making it one of the largest corporate training companies in India AFT's training modules include programs right from basic financial statements analysis to advanced financial modelling, corporate finance, risk management and capital markets, etc related trainings.
Snap, the Perishable Picture Company: Valuing the IPO
Toward the end of 2016, Snap (formerly known as Snapchat) became the latest of the social media companies to enter the public market. With 161 million engaged users but little in terms of current revenues & big operating losses, Snap fills the bill as a company with lots of potential but plenty of peril. In this post, I tell my story for Snap and the value that emerges from it. It is, for the most part, an optimistic story of a young company that has found a niche in the crowded social media space. In my story, Snap will not and should not try to be the next Facebook but I also see it as avoiding becoming Twitter Redux. Tell your own story and make your storyline into a value! Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/SnapIPO.pdf Blog Post: http://aswathdamodaran.blogspot.com/2017/02/a-snap-story-valuing-snap-ahead-of-its.html Links Snap Prospectus:https://www.sec.gov/Archives/edgar/data/1564408/000119312517029199/d270216ds1.htm Snap IPO valuation (my base story): http://www.stern.nyu.edu/~adamodar/pc/blog/SnapIPOFeb2017.xls Snap as Facebook Light: http://www.stern.nyu.edu/~adamodar/pc/blog/SnapFacebookLite.xls Snap as Twitter Redux:http://www.stern.nyu.edu/~adamodar/pc/blog/SnapTwitterredux.xls Snap Simulation: http://www.stern.nyu.edu/~adamodar/pc/blog/SnapSimulation.pdf
Views: 16821 Aswath Damodaran
Session 30: Valuation - Cash Flows & Discount Rates
Look at the estimation process and challenges associated with estimating cash flows & discount rates in valuation
Views: 11960 Aswath Damodaran
Startups Valuation Using The Venture Capital Method | Harvard Business School
How to value startup using the venture capital method? How do you value a startup company when it has no track record or financials? In this series, we use the venture capital method from Harvard Business School to value a dining app business as it goes through three rounds of financing from angels and venture capitalists. This method reflects the process of investors, where they are looking for an exit within 3 to 7 years. For more free finance lessons and 1:1 mentorship with industry experts, visit us: https://mentor.bluebookacademy.com/live-1-1-mentoring/
Views: 32086 BlueBookAcademy.com
Equity Value vs. Enterprise Value and Valuation Multiples
Learn how Equity Value and Enterprise Value change when a company issues debt, pays off debt, issues equity, and repurchases shares. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" The key point is that regardless of how a company is financed, its Enterprise Value - and Enterprise Value-based multiples - do NOT change. Equity Value, however, may change depending on its share count and any shares it issues or repurchases. So even when a company changes its debt or equity or cash levels, valuation multiples such as EV / EBITDA and EV / Revenue will not change immediately afterward... whereas a multiple such as P / E (Price Per Share / Earnings Per Share, or Equity Value / Net Income) will change if new equity has been issued. It's just like when you buy a house - house is worth $500K regardless of whether you pay with 100% cash or 50% cash and 50% debt, or anything else in between... but depending on how much cash and debt you use, your own EQUITY IN THAT HOUSE will be different. The $500K total value of the house is like the Enterprise Value for a company. And if you contribute $250K of your own cash and take on a $250K mortgage, the $250K you chip in is your "Equity Value" and the $250K mortgage is the "Debt." Over time, your own "Equity Value" in that house will increase and your own "Debt" will decrease as you repay the mortgage, but the $500K total value for the house stays the same as long as the house's intrinsic value remains the same. This example uses Coca-Cola's filings and financial statements - you can find them and try this yourself right here: http://www.coca-colacompany.com/investors/annual-other-reports http://www.coca-colacompany.com/investors/investors-info-quarterly-filings (NOTE: The numbers, of course, will be different if you look at this video at a later date, but the concept remains the same and has always been the same ever since Equity Value and Enterprise Value were invented.) MENTIONED RESOURCES http://youtube-breakingintowallstreet-com.s3.amazonaws.com/KO-Equity-Value-Enterprise-Value.xlsx
Aswath Damodaran: "The Value of Stories in Business" | Talks at Google
The world of investing/finance is divided into two camps. In one, you have the number-crunchers, who believe that the only things that matter are the numbers and that imagination/creativity are dangerous distractions. In the other, you have the storytellers, who build on the stories they tell about companies and how these stories will bring untold wealth. Each side believes it has a monopoly on the truth and looks with contempt at the other. Prof. Damodaran contends that stories matter, but only if they are connected with numbers. And numbers are empty, unless they are connected with narratives. In this talk, he looks at the process by which one might build narratives, check them against reality and convert them into valuations. Uber and Ferrari examples are used to illustrate the process. Slides for the talk: https://goo.gl/zKVaQL Check out the book on Google Play: https://goo.gl/tnGlDe This talk was moderated by Saurabh Madaan.
Views: 78936 Talks at Google
3 ways to value a company - MoneyWeek Investment Tutorials
Valuing a company is more art than science. Tim Bennett explains why and introduces three ways potential investors can get started. Related links… • How to value a company using discounted cash flow (DCF) - https://www.youtube.com/watch?v=jfcRUzKZZE8 • How to value a company using net assets - https://www.youtube.com/watch?v=rV68zoBKTJE • What is a balance sheet? https://www.youtube.com/watch?v=DuKEcxVplnY MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors. In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter.
Views: 237439 MoneyWeek
CFA Level II: Equity Investments - Free Cash Flow Valuation Part I(of 2)
FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... This series of video covers the following points : -There are two ways to estimate the equity value using free cash flows. -An entire firm and all its cash flows (FCFF) are discounted, with the relevant discount rate being the weighted average cost of capital (WACC) because it reflects all the firm’s sources of capital. The value of the firm’s debt is then subtracted to calculate the equity value. -Only the free cash flows to equity (FCFE) are discounted, with the relevant discount rate being the required return on equity. This provides a more direct way of estimating equity value. -In theory, both approaches should yield the same equity value if the inputs are consistent. However, the FCFF approach would be favored in two cases. The firm’s FCFE is negative. -The firm’s capital structure (mix of debt and equity financing) is unstable. The FCFF approach is favored here because a) the required return on equity used in the FCFE approach will be more volatile when the firm’s financial leverage (use of debt) is unstable and b) when using historical data to estimate free cash flow growth, FCFF growth might reflect the firm’s fundamentals better than FCFE growth, which would fluctuate as debt fluctuates. -FCFF and FCFE approaches to valuation -value of a company by using the stable-growth, two-stage, and three-stage FCFF and FCFE models. -appropriate adjustments to net income, earnings before interest and taxes (EBIT), earnings before interest, taxes, depreciation, and amortization (EBITDA), and cash flow from operations (CFO) to calculate FCFF and FCFE. -approaches for forecasting FCFF and FCFE. -approaches for calculating the terminal value in a multistage valuation model -We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! -This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level II Classes in Pune (India).
Views: 19037 FinTree
Dividend Discount Model - Commercial Bank Valuation (FIG)
Why the Dividend Discount Model (DDM) is used to value commercial banks instead of the traditional Discounted Cash Flow (DCF) analysis. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" There are 3 main reasons why the DCF and the concept of Free Cash Flow (FCF) do not apply to commercial banks: 1. You can't separate operating vs. investing vs. financing activities - the lines are very blurry for a bank, since items like debt are more operationally-related and fund the bank's lending activities. 2. CapEx doesn't represent re-investment in the business, as it does for a normal company - for a bank,"re-investment" means hiring people, doing more lending, etc. 3. Working Capital represents something much different for a bank - the standard definition of Current Assets Excl. Cash Minus Current Liabilities Excl. Debt makes no sense, because for banks that includes tons of investments, securities, other borrowings, etc. so you could see massive swings... What You Do Instead - Use Dividends as a Proxy for Free Cash Flow Why? Because banks are CONSTRAINED by capital requirements - according to the Basel accords (I, II, III), they must maintain a certain "buffer" at all times to cover unexpected losses on their loans... So just like CapEx requirements, Net Income growth, and Working Capital constrain FCF for normal companies, the Tier 1 Capital / Tangible Common Equity / Total Capital requirements constrain dividends for banks. So we'll project a bank's regulatory capital, its asset growth, and its net income, and use those to project its dividends - then, discount, and sum up the dividends and discount and add the NPV of its terminal value. How to Set Up a Dividend Discount Model (DDM) 1. Make assumptions for Total Assets, Asset Growth, targeted Tier 1 (or other) Ratios, Risk-Weighted Assets, Return on Assets (ROA) or Return on Equity (ROE), and Cost of Equity. 2. Next, project Assets and Risk-Weighted Assets. 3. Then, project Net Income based on ROA or ROE. 4. Then, project Shareholders' Equity (AKA Tier 1 Capital) based on targeted capital ratio... 5. And BACK INTO dividends! Different from a normal company's DDM! Set dividends such that the minimum capital ratio is maintained, based on starting Shareholders' Equity and Net Income that year. 6. Flesh out the rest of the model - stats, growth rates, other metrics. 7. Discount and sum up dividends. 8. Calculate, discount, and add Terminal Value so that NPV = NPV of Terminal Value + NPV of All Dividends. 9. Calculate the Implied Share Price and compare to actual Share Price. Is the bank undervalued? Overvalued? What are the clues so far? What Next? Try it with a real company, using its historical financial information. Add more complex / realistic assumptions, based on industry research, channel checks, the bank's own strengths/weaknesses, etc. Add more advanced features - other ways to calculate Terminal Value, more accurate regulatory capital, mid-year discount and/or stub periods, stock issuances / repurchases, multiple growth stages, and so on.
Walmart's Flipkart Gambit: Growth Rebirth or Costly Facelift?
Walmart's $16 billion investment for 77% in Flipkart (valuing the company at $21 billion), the Indian online retail leader, is one of Walmart's biggest gambles on growth, and I look at four possible explanations for the deal: (1) Walmart is playing a pricing game, hoping to flip Flipkart to another investor, just as existing investors in Flipkart did to Walmart. (2) Walmart is buying an option to enter the growing, highly volatile Indian retail market (3) The deal will create synergies for Walmart (increasing revenues at its Indian stores) and/or Flipkart (by increasing its online revenue growth or profitability) (4) The deal is a defensive maneuver meant to slow down Amazon. Given how large Amazon looms in the fears of both Walmart and Flipkart, and how difficult it is to find justification for the first three reasons, I conclude that it this deal is defensive and that cannot be good news for Walmart shareholders. Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/WalmartFlipkart.pdf Blog Post: https://aswathdamodaran.blogspot.com/2018/05/walmarts-india-flipkart-gambit-growth.html Walmart Valuation: http://www.stern.nyu.edu/~adamodar/pc/blog/WMT2018.xlsx
Views: 10931 Aswath Damodaran
The Dark Side of Valuation: India Business Forum
Aswath Damodaran Kerschner Family Chair in Finance Education, NYU Stern India Business Forum: India in the 21st Century Friday, January 11, 2013 Mumbai, India
Views: 68116 NYU Stern
Valuation and Discounted Cash Flow Analysis (DCF)
Here's a quick overview on Valuation. We also construct an entire discounted cash flow analysis on WalMart in conjunction with my book Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity http://www.amazon.com/Financial-Modeling-Valuation-Practical-Investment/dp/1118558766/ref=sr_1_8?ie=UTF8&qid=1422553204&sr=8-8&keywords=valuation
Views: 82704 Paul Pignataro
Aswath Damodaran - The Value of a User
While traditional business valuations have treated cash flow as the ultimate metric for gauging success, many of today's companies focus more on the size of their user community than their bottom line. Responding to evolving perspectives, newer valuation models attempt to assign value to individual consumers, but these models involve a series of assumptions and generalizations that do not always withstand scrutiny. Using Uber as a case study, this session will compare and contrast user-based valuation models with more traditional discounted cash flow (DCF) models, identifying where they converge and diverge. Aswath Damodaran holds the Kerschner Family Chair in Finance Education and is a Professor of Finance at New York University Stern School of Business. He received a B.A. in Accounting from Madras University, an M.S. in Management from the Indian Institute of Management, and an M.B.A. and Ph.D. in Finance from the University of California. He has been voted “Professor of the Year” by the graduating M.B.A. class five times during his career at NYU. In addition, Professor Damodaran is the author of several highly-regarded and widely-used academic texts on Valuation, Corporate Finance, and Investment Management. Professor Damodaran currently teaches Corporate Finance and Equity Instruments & Markets. His research interests include Information and Prices, Real Estate, and Valuation. The L2 Digital Leadership Academy, led by faculty from NYU Stern, Kellogg School of Management, Harvard Business School, and L2 researchers, is a two-day conference rooted in business fundamentals coupled with tactical sessions on digital topics.
Views: 26128 L2inc
Real Estate Valuation Methods
Real Estate Valuation Methods http://reinvestortv.com/real-estate-v... Thanks for watching what methods to use for valuating properties! What would make a property a good or a bad deal? How do you figure out the value of a property? In this video, I’ll show real estate valuation methods you can use for valuating properties. Subscribe and visit: http://REInvestorTV.com for more videos! If you enjoyed, please hit Subscribe and I'll see you again next week for another real estate investment tip, "Popular Questions Answered", or some solid real estate game plans! Join the Fun Facebook: Real Estate Investor TV Twitter: @REInvestorTV LinkedIn: Kris Krohn ============================================================================== Kris Krohn is a real estate investor and the founder of Real Estate Investor TV. Visit this website to learn more about Kris http://reinvestortv.com/ Kris Krohn also established an instructional guide for investors, The Strait Path System, and is the author of The Strait Path to Real Estate Wealth. Unlock your wealth potential! Take yourself to the next level! Join Kris on his 3 day wealth intensive program http://bit.ly/2b2vr8f Kris lives in Orem, Utah, with his wife Kalenn and their four children. ============================================================================= Film by Nate Woodbury http://GoWallaby.com
Valuing Tech's Titans
Are we basing companies' valuations on the right criteria? In this long-form conversation, Scott and NYU Stern colleague Aswath Damodaran discuss what the top digital companies are really worth. (2:07) Source: “International Netflix Subscriptions Surpass U.S.,” Statista, July 2017. http://bit.ly/2v3FLIK (2:38) Source: RBC Capital Markets, June 2016. (3:33) Source: “How Many Users Does Twitter Have?” The Motley Fool, April 2017. http://bit.ly/2w4qIfg (4:11) Source: “How Much Time Do People Spend On Social Media?” Mediakix, December 2016. http://bit.ly/2oFfwWJ (5:13) Source: “Amazon Inc Form 10-K,” Amazon, February 2017. http://bit.ly/2u31VXs (9:16) Source: “Letter To Shareholders,” Amazon, 1997. http://bit.ly/1yx8xhu (11:44) Source: “Amazon’s Long-Term Growth,” Business Insider, 2016. http://read.bi/20c5FVd (12:25) Source: “Form S-1,” Snap, Inc., February 2017. http://bit.ly/2kmGKwj (16:04) Source: “About Us,” Airbnb, 2017. http://bit.ly/18TOxV1 (16:31) Source: “RANKED: The 18 Companies Most Likely to Get Self-Driving Cars On The Road First,” Business Insider, April 2017. http://read.bi/2v3paVu (20:16) Source: “Google and Facebook Devour the Ad and Data Pie. Scraps For Everyone Else,” Digital Content Next, June 2016. http://bit.ly/28JbGA9 (20:53) Source: “Number of Monthly Active WhatsApp Users Worldwide From April 2013 to January 2017 (in millions),” Statista, 2017. http://bit.ly/2j0uHH6 (21:39) Source: “Chart: Here’s How 5 Tech Giants Make Their Billions,” Visual Capitalist, May 2017. http://bit.ly/2qgkaIE (23:09) Source: “Chart: Here’s How 5 Tech Giants Make Their Billions,” Visual Capitalist, May 2017. http://bit.ly/2qgkaIE (23:31) Source: Google Finance, July 2017. (24:56) Source: Google Finance, July 2017. (25:36) Source: “Netflix Missed Its Q1 Subscriber Numbers But Q2 Looks Better,” recode, April 2017. http://bit.ly/2oFhtzW More on Aswath Damodaran's research: damodaran.com Episode 134
Views: 288340 L2inc
Session 35: Relative Valuation
Relative valuation
Views: 7819 Aswath Damodaran
THE VALUATION OF A STOCK STOCK VALUATION can be extremely complex or simple. The fight is between two worlds: the academic world and the stock market investing practitioners (Damodaran vs Munger and Warren Buffett). 99% of people who invest are academics because that is what you learned at school. Only the 1% are practitioners who have constantly beaten the market over the last 5 decades. We are going to discuss today: STOCK VALUATION and input parameters – complex or common sense? STOCK VALUATION FORMULAS METHODS OF STOCK VALUATION EQUITY RISK PREMIUM How to do stock valuation properly to get good investing returns not academic titles or grades! What do I do? Full-time independent stock market analyst and researcher: https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More at the Sven Carlin blog: https://svencarlin.com Facebook video: https://www.youtube.com/watch?v=6WwxJNuGfB4 Damodaran model direct download if copy in browser: http://www.stern.nyu.edu/~adamodar/pc/blog/FacebookApr2018.xlsx
NYU’s ‘dean of valuation’ says bitcoin cannot be valued
The problem with bitcoin, "Dean of Valuation" Aswath Damodaran says, is that investors don't know why they're paying so much for it. That doesn't mean it will all end badly for cryptocurrency, as billionaire investor Warren Buffett projected. Buffet made headlines Wednesday for sharing some apocalyptic words about the future of cryptocurrency. "In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending," Buffett said during a CNBC exclusive interview. Damodaran, who teaches finance at New York University's Stern School of Business, called out Buffet for "brushing the entire sector with too broad a brush." Damodaran told CNBC's "Fast Money" on Wednesday: "If you ask people why they're paying what they are for any of these cryptocurrency investments, you don't get a logical answer. You get an answer like, 'I think I can make more money on this.'" "I think every single crypto asset is being priced right now, it's not being valued," he added. To assign valuation to cryptocurrency assets, he first divided them into three categories. Bitcoin falls into the first bucket, currency: "Cryptocurrencies, like bitcoin, cannot be valued because they're currencies." Commodities are the second, into which ethereum falls, he said. "It's marketed as a lubricant for smart contracts. Smart contracts are what the fin-tech — the blockchain — revolution is going to deliver. Ethereum can become a significant part of that business and you can value it as a commodity," Damodaran said. "There are commodities that can be valued as slices of businesses to view them all as worthless and useless is wrong." Then there are ICOs. Those, he said, can be valued as slices of businesses. "To put them all together in one big bucket and throw them over the edge doesn't make sense to me," Damodaran said. Damodaran tied valuation for cryptocurrencies such as ethereum to founders creating business models. "I think that will be the next phase in the crypto investment market. You'll start to see people pushing these crypto investments to come up with business models, to show how they'll make money," he said. While the "Dean of Valuation's" view is much more optimistic than the "Oracle of Omaha's," he issued a word of caution to bandwagon investors. "Will it end badly for some of the people involved? Absolutely. For those people who got on the bandwagon late and are playing the pricing game, for some of them, it's going to end badly," he said.
Views: 1930 Cryptocurrency News
Dica de livro sobre valuation.
O consultor financeiro Rodrigo Leone apresenta o livro "Investment valuation" de Aswath Damodaran.
Views: 523 Rodrigo Leone
Aswath Damodaran – Story and valuation (Nordic Business Forum 2018)
Aswath Damodaran is the Kerschner Family Chair Professor of Finance at the Stern School of Business at New York University.  He teaches the corporate finance and valuation courses in the MBA program. He received his MBA and Ph.D from the University of California at Los Angeles. His research interests lie in valuation, portfolio management and applied corporate finance. He has published in the Journal of Financial and Quantitative Analysis, the Journal of Finance, the Journal of Financial Economics and the Review of Financial Studies. He has also written four books on valuation (Damodaran on Valuation, Investment Valuation, The Dark Side of Valuation, The Little Book of Valuation), and two on corporate finance (Corporate Finance: Theory and Practice, Applied Corporate Finance: A User’s Manual). —— This presentation took place at Nordic Business Forum 2018 on 26.-27. September in Helsinki, Finland. The event gathered together 7500 CEOs, top executives, and entrepreneurs from over 40 countries. —— Nordic Business Forum 2019 will take place in Helsinki, Finland on 9 – 10 October. Tickets for Nordic Business Forum 2019: http://www.nbforum.com/2019 Website: http://www.nbforum.com Facebook: http://www.facebook.com/nbforum.fi Twitter: http://www.twitter.com/NBForumHQ Instagram: http://instagram.com/NBForumHQ LinkedIn: https://www.linkedin.com/company/nordic-business-forum
How to value a company using discounted cash flow (DCF) - MoneyWeek Investment Tutorials
Every investor should have a basic grasp of the discounted cash flow (DCF) technique. Here, Tim Bennett introduces the concept, and explains how it can be applied to valuing a company.
Views: 440302 MoneyWeek
Private Company Valuation
In this tutorial, you'll learn how private companies are valued differently from public companies, including differences in the financial statements, the public comps, the precedent transactions, and the DCF analysis and WACC. Get all the files and the textual description and explanation here: http://www.mergersandinquisitions.com/private-company-valuation/ Table of Contents: 1:29 The Three Types of Private Companies and the Main Differences 6:22 Accounting and 3-Statement Differences 12:04 Valuation Differences 16:14 DCF and WACC Differences 21:09 Recap and Summary The Three Type of Private Companies To master this topic, you need to understand that "private companies" are very different, even though they're in the same basic category. There are three main types worth analyzing: Money Businesses: These are true small businesses, owned by families or individuals, with no aspirations of becoming huge. They are often heavily dependent on one person or several individuals. Examples include restaurants, law firms, and even this BIWS/M&I business. Meth Businesses: These are venture-backed startups aiming to disrupt big markets and eventually become huge companies. Examples include Kakao, WhatsApp, Instagram, and Tumblr – all before they were acquired. Empire Businesses: These are large companies with management teams and Boards of Directors; they could be public but have chosen not to be. Examples include Ikea, Cargill, SAS, and Koch Industries. You see the most differences with Money Businesses and much smaller differences with the other two categories. The main differences have to do with accounting and the three financial statements, valuation, and the DCF analysis. Accounting and 3-Statement Differences Key adjustments might include "normalizing" the company's financial statements to make them compliant with US GAAP or IFRS, classifying the owner's dividends as a compensation expense on the Income Statement, removing intermingled personal expenses, and adjusting the tax rate in future periods. These points should NOT be issues with Meth Businesses (startups) or Empire Businesses (large private companies) unless the company is another Enron. Valuation Differences The valuation of a private company depends heavily on its purpose: are you valuing the company right before an IPO? Or evaluating it for an acquisition by an individual or private/public buyer? These companies might be worth very different amounts to different parties – they *should* be worth the most in IPO scenarios because private companies gain a larger, diverse shareholder base like that. You'll almost always apply an "illiquidity discount" or "private company discount" to the multiples from the public comps; a 10x EBITDA multiple is great, but it doesn't hold up so well if the comps have $500 million in revenue and your company has $500,000 in revenue. This discount might range from 10% to 30% or more, depending on the size and scale of the company you're valuing. Precedent Transactions tend to be more similar, and you don't apply the same type of huge discount there for larger private companies. You may see more "creative" metrics used, such as Enterprise Value / Monthly Active Users, especially for private mobile/gaming/social companies. DCF and WACC Differences The biggest problems here are the Discount Rate and the Terminal Value. The Discount Rate has to be higher for private companies, but you can't calculate it in the traditional way because private companies don't have Betas or Market Caps. Instead, you often use the industry-average capital structure or average from the comparables to determine the appropriate percentages, and then calculate Beta, Cost of Equity, and WACC based on that. There are other approaches as well – use the firm's optimal capital structure, create a giant circular reference, or use earnings volatility or dividend growth rates – but this is the most realistic one. You use this approach for all private companies because they all have the same problem (no Market Cap or Beta). You'll also have to discount the Terminal Value, but this is mostly an issue for Money Businesses because of their dependency on the owner and key individuals. You could heavily discount the Terminal Value, use the company's future Liquidation Value AS the Terminal Value, or assume the company stops operating in the future and skip Terminal Value entirely. Regardless of which one you use, Terminal Value will be substantially lower for this type of company. The result is that the valuation will be MOST different for a Money Business, with smaller, but still possibly substantial, differences for Meth Businesses and Empire Businesses. http://www.mergersandinquisitions.com/private-company-valuation/
Investment Banking Training    Financial Modeling and Valuation
Global Investment Banking Analyst/Associate Program Location: London or Remote/Web Video Conferencing The Global Investment Banking Program is an exciting opportunity to gain experience of real world transactions and working knowledge for Investment Banking, Private Equity and Hedge Fund careers. The program will give you solid understanding of transaction concepts and robust practical skills for extensive investment banking work experience. The 5-week program provides the following real world experience: • Analysis of London stock exchange and New York stock exchange listed companies • Preparation of buy and sell side transaction pitches, teasers, and writing confidential investment memo • Excel Financial modeling and valuation of public listed companies by using "Comparable comps" method • Excel Financial modeling and valuation of public listed companies by using " Discounted cash flow" method • Excel Financial modeling and determination of the premium paid by buyer of the business by using "Transaction comps" method • Excel Financial modeling and leveraged buyout of the company by a Private Equity sponsor • Preparation of M&A transaction-ready model with Accretion/Dilution analysis of the deal • Board presentation and closing of investment banking transactions Upon completion of the program you will be prepared to carry out responsibilities of a full-time Analyst/Associate in investment banks and private equity firms. The program statement on your CV and your work experience reference report will enable you to stand out from thousands of other candidates and ensure that you are a strong contender in one the most competitive industries in the world. How to apply: Please send your CV to [email protected] Please note that a placement fee applies
Views: 15218 Global Banking School
What Is A Valuation Multiple?
This lesson was prompted by a question that came in from a reader and student of our courses the other day: "When you divide Enterprise Value by Revenue (EV / Revenue), or Price Per Share by Earnings Per Share (P / E), what does that actually mean? By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" In other words, if Enterprise Value / Revenue is 5.8x, what does that number actually mean?" Answer often given in textbooks: How valuable a company is in relation to its sales, profits, and so on... based on those metrics, how does the market value that company? But the real answer: the multiple itself means nothing at all! By itself, a single valuation multiple such as 5.8x or 15.3x or 25.7x means... absolutely nothing. Valuation multiples are ONLY meaningful in relation to the multiples of OTHER, similar companies ("public comps" or "public company comparables"). It's like saying, in real life, "The asking price for that house is $500,000, or around $500 per square foot. What does that mean?" Answer: It depends... on the asking prices of similar houses in the region, also on the location, the type of house, # beds and bathrooms, the condition, the neighborhood, the public school system... Could mean that the house is very expensive, or that it's very cheap, or that it's priced about right. You already know this if you've studied valuation and have valued companies on your own... BUT there are 2 specific points that often go overlooked with valuation multiples: 1. The companies you're comparing should ideally have similar growth and margin profiles, or the comparison is less meaningful. It's NOT enough just to be in the same industry and be about the same size - that's a starting point, but financial profiles should ideally be similar as well. Be very careful - acquisitions often distort these numbers! Very different margins also distort the numbers (ex: 2 companies with similar revenue and 1 has a much higher margin - mathematically speaking, very likely to trade at a LOWER multiple just because the denominator will be bigger). 2. Even if the companies DO have similar financial profiles, a higher or lower multiple doesn't necessarily mean that one company is "overvalued" or "undervalued" because qualitative factors also play a role. For example, did the company just make an acquisition? Did it miss earnings? Did it get sued? Did a new competitor pop up? Think of valuation multiples as "clues" in a detective story... they can guide you in the right direction, but 1 clue is not enough evidence to solve the mystery of whether a company is valued appropriately. We demonstrate both of these points with Ralcorp (a food and beverages company) in the video, and show you how the set of public comps all have very different financial profiles that were impacted by acquisitions in some cases. Key Takeaways: 1. A valuation multiple means nothing on its own - only meaningful when compared to other companies', and ideally the median multiple from a set of other companies. 2. When picking a set of public comps, it's not just about industry and size... even if you do select companies with those criteria, must pay attention to growth and margins as well. If all the companies in your set have very different growth and margins from the company you're valuing, you may want to consider a different set. If there are acquisitions, it's better to pay more attention to forward multiples / growth rates / margins instead - for 1-2 years in the future. The analysis is MOST meaningful if, for example, all the companies have very similar growth and margins but the one you're looking at trades at much different multiples - then it's worth investigating further and seeing what explains that. 3. Just because a multiple is higher or lower than other companies' multiples doesn't mean that the company you're valuing is overvalued or undervalued... it's just one of many factors. Here, the presence of a hostile bidder threw off the numbers. Plus, rumors of the company spinning off divisions... Could be any number of things in real life as well - earnings announcements, changes in strategy, expansion plans, patents, lawsuits, management team changes, etc.
Free Cash Flow: How to Interpret It and Use It In a Valuation
You'll learn what "Free Cash Flow" (FCF) means, why it's such an important metric when analyzing and valuing companies. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also learn how to interpret positive vs. negative FCF, and what different numbers over time mean -- using a comparison between Wal-Mart, Amazon, and Salesforce as our example. Table of Contents: 0:54 What Free Cash Flow (FCF) is and Why It's Important 2:26 What Positive FCF Tells You, and What to Do With It 3:56 What Negative FCF Tells You, and What to Do With It 4:38 Why You Exclude Most Investing and Financing Activities in the FCF Calculation 7:55 How to Use and Interpret FCF When Analyzing Companies 11:58 Wal-Mart vs. Amazon vs. Salesforce: Free Cash Flow Across Sectors 19:33 Recap and Summary What is Free Cash Flow? Normally it's defined as Cash Flow from Operations minus Capital Expenditures. Tells you the company's DISCRETIONARY cash flow - after paying for expenses and working capital requirements like inventory and capital expenditures, how much cash flow can it put to use for other purposes? If the company generates a lot of Free Cash Flow, it has many options: hire more employees, spend more on working capital, invest in CapEx, invest in other securities, repay debt, issue dividends or repurchase shares, or even acquire other companies. If FCF is negative, you need to dig in and see if it's a one-time issue or recurring problem, and then figure out why: Are sales declining? Are expenses too high? Is the company spending too much on CapEx? If FCF is consistently negative, the company might have to raise debt or equity eventually, or it might have to restructure itself or cut costs in some other way. Why Do You Exclude Most Investing and Financing Activities Other Than CapEx? Because all other activities are, for the most part, "optional" and non-recurring. A normal company does not NEED to buy stocks or issue dividends or repurchase shares... those are all optional uses of cash. All it NEEDS to do to keep its business running is sell products to customers, pay for expenses, and keep investing in longer-term assets such as buildings and equipment (PP&E). Debt repayment and interest expense are "borderline" because some variations of Free Cash Flow will include them, others will exclude them, and some will include interest expense but not debt principal repayment. How Do You Use Free Cash Flow? It's used in a DCF (or at least, a variation of it) to value a company; it's also used in a leveraged buyout (LBO) model to determine how much debt a company can repay. And you can calculate it on a standalone basis for use when comparing different companies. The key is to DIG IN and see why Free Cash Flow is changing the way it is - Organic sales growth? Artificial cost-cutting? Accounting gimmicks? Different working capital policies? IDEALLY, FCF will be increasing because of higher units sales and/or higher market share, and/or higher margins due to economies of scale. Less Good: FCF is growing due to cost-cutting, CapEx slashing, or FCF is growing in spite of falling sales and profits... because of a company playing games with Working Capital, non-core activities, or CapEx spending. Wal-Mart vs. Amazon vs. Salesforce Comparison Main takeaway here is that Wal-Mart's FCF is all over the place, but Cash Flow from Operations is MOSTLY growing, so that appears to be driven by the also growing organic sales. The company is doing some odd things with CapEx and Working Capital, which led to fluctuations in FCF - not exactly "bad" or "good," just neutral and requires more research. With Amazon, they've increased CapEx spending massively in the past 2 years so that has pushed down CapEx. CFO is growing, driven by organic revenue growth (no "games" with Working Capital), but it's very difficult to assess whether all that CapEx spending will pay off in the long-term. With Salesforce, FCF is definitely growing organically (Revenue growth leads directly to CFO growth, and CapEx varies a bit but not as much as with Amazon), but the company is also spending a ton on acquisitions... will it continue? If CapEx as a % of revenue stays low, it will most likely continue to spend on acquisitions - unlikely to issue dividends, repurchase shares, etc. since it's a growth company. Further Resources http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Free-Cash-Flow.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Walmart-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Amazon-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Salesforce-Financial-Statements.pdf
Aswath Damodaran On Robert Shiller’s Valuation Worries | Trading Nation | CNBC
Robert Shiller says the market is dangerously overvalued. Aswath Damodaran of NYU’s Stern School of Business discusses the call with Brian Sullivan. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC Aswath Damodaran On Robert Shiller’s Valuation Worries | Trading Nation | CNBC
Views: 7637 CNBC
Session 29: Valuation - First Steps
Lay out different ways in which you can approach valuation and define the key drivers of value
Views: 9008 Aswath Damodaran
Commercial Real Estate - How to Value a Property
We talk about 3 valuation methods in this video - Sales Comparison, Capitalization, and Replacement Cost Methods. Each has its own use, and appropriate circumstances.
Views: 105787 InvestRelevant
Session 19: Asset Based Valuation
Look at valuation approaches (accounting book value, sum of the parts) that value the assets of a business and aggregate up to value.
Views: 17521 Aswath Damodaran
Aswath Damodaran, UVIG Valuation Talk Pt.1
At the University of Victoria Investment Group's event Dinner with Damodaran. Professor gave a speech about Introductory Valuation using examples such as Uber and Ferrari. We'd like to sincerely thank Professor Damodaran for taking the time to engage with students who are passionate about the world of finance, investing, and valuation, and are also super fans.
Aswath Damodaran – On Amazon (Nordic Business Forum 2018)
Aswath Damodaran is the Kerschner Family Chair Professor of Finance at the Stern School of Business at New York University.  He teaches the corporate finance and valuation courses in the MBA program. He received his MBA and Ph.D from the University of California at Los Angeles. His research interests lie in valuation, portfolio management and applied corporate finance. He has published in the Journal of Financial and Quantitative Analysis, the Journal of Finance, the Journal of Financial Economics and the Review of Financial Studies. He has also written four books on valuation (Damodaran on Valuation, Investment Valuation, The Dark Side of Valuation, The Little Book of Valuation), and two on corporate finance (Corporate Finance: Theory and Practice, Applied Corporate Finance: A User’s Manual). —— This presentation took place at Nordic Business Forum 2018 on 26.-27. September in Helsinki, Finland. The event gathered together 7500 CEOs, top executives, and entrepreneurs from over 40 countries. —— Nordic Business Forum 2019 will take place in Helsinki, Finland on 9 – 10 October. Tickets for Nordic Business Forum 2019: http://www.nbforum.com/2019 Website: http://www.nbforum.com Facebook: http://www.facebook.com/nbforum.fi Twitter: http://www.twitter.com/NBForumHQ Instagram: http://instagram.com/NBForumHQ LinkedIn: https://www.linkedin.com/company/nordic-business-forum
Session 2: Intrinsic Value - Foundation
Sets up the foundations of intrinsic valuation, with a contrast between valuing a business and valuing the equity in that business.
Views: 173201 Aswath Damodaran

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