Aswath Damodaran

In this session (second half of morning session, day 2), I started with a quick discussion of the values of brand names and franchise value and an analysis of the expected value of control, before embarking on a valuation of Amazon in 2000, to illustrate the challenges in valuing young companies.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execs/val2daysession3B.pdf(This is the first of eight sessions, recorded of a two-day valuation class that I taught for NYU's Trium MBA class in 2022. The playlist with all eight sessions is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/execclass.htmThe webpage for the class is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/valseminar2day.htmlThe entire lecture notes are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/val2day2022.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

Tesla has been a bright star in the investing universe for much of the last decade. It's rise in market capitalization, now higher than that of GM or Ford, can be traced to Elon Musk's vision and the company's innovative products, and it is quite clear that the company has disrupted the automobile business. In spite of its successes, though, I think that the company is too richly priced given the challenges it faces over the next decade. It's use of debt is puzzling, given that it derives no tax benefits from borrowing and is putting its promise and potential at risk of distress. Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/Tesla2017.pdfBlog Post: Valuation of Tesla: http://www.stern.nyu.edu/~adamodar/pc/blog/TeslaAugust2017.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

In this session (first half of morning session, day 1), I provide a rationale for why I do valuation and then list out the broad themes in valuation: that it is a craft, that valuing ≠ pricing, that a good valuation is a melding of story and numbers and that acting on valuation requires faith. I also listed out some common misconceptions about valuation.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execs/val2daysession1A.pdf(This is the first of eight sessions, recorded of a two-day valuation class that I taught for NYU's Trium MBA class in 2022. The playlist with all eight sessions is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/execclass.htmThe webpage for the class is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/valseminar2day.htmlThe entire lecture notes are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/val2day2022.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

If you define success as a surging market price, crypto currencies have been incredibly successful, with Bitcoin and Ether leading the way. However, viewed as currencies, crypto currencies have not made much headway as mediums of exchange or stores of value. I argue that that the characteristics that have made crypto currencies so attractive to traders (the volatility and large price movements) have made them unattractive to transactors, and that the promoters of crypto currencies need to change both their marketing and design focus towards making them succeed as currencies.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/CryptoCurrencies.pdfBlog Post: https://aswathdamodaran.blogspot.com/2017/08/the-crypto-currency-debate-future-of.html Learn more about your ad choices. Visit megaphone.fm/adchoices

In this session (second half of the afternoon session, day 2), I spent some time using my Uber valuation in June 2014 to illustrate the link between stories and numbers, before closing out with a discussion of how best to price companies.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execs/val2daysession4B.pdf(This is the first of eight sessions, recorded of a two-day valuation class that I taught for NYU's Trium MBA class in 2022. The playlist with all eight sessions is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/execclass.htmThe webpage for the class is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/valseminar2day.htmlThe entire lecture notes are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/val2day2022.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

I am a teacher and have been putting my classes online for almost 20 years. That said, there is a big difference between putting classes online and teaching online, and I am still learning about that difference. Keeping students engaged, enthused and on task, when you are teaching a class online, is much more difficult that doing so in a classroom. I created my first online classes about five years ago and now have free online classes on corporate finance, valuation and investment philosophies.Corporate Finance: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastcfonline.htmValuation: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastvalonline.htmInvestment Philosophies: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastinvphil.htmThe problem with these classes is that while they deliver the content, there is no interaction, exams/quizzes or projects and thus no certification. Last semester, NYU decided to offer my valuation class as a certification class and this class comes with more interaction, testing and a certificate. That is the good news. The bad news is that you pay NYU prices. If you can afford those prices, here is the link to the Fall 2017 version of the Valuation certificate and an advance link to the Spring 2018 Pilot version of the corporate finance class. Stern Valuation Certificate (Fall 2017): http://www.stern.nyu.edu/programs-admissions/online-certificate-courses/online-valuation-courseStern Corporate Finance Certificate Pilot (Spring 2018): http://www.stern.nyu.edu/programs-admissions/online-certificate-courses/online-corporate-finance-courseIf you cannot afford the price or you feel that it is not worth it, please try the free online classes instead. Learn more about your ad choices. Visit megaphone.fm/adchoices

In this session (first half of afternoon session, day 2), I looked at a series of difficult to value companies, from distressed firms, to commodity and financial service firms and ending with private companies. I also laid out the process for connecting stories to numbers in valuation.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execs/val2daysession4A.pdf(This is the first of eight sessions, recorded of a two-day valuation class that I taught for NYU's Trium MBA class in 2022. The playlist with all eight sessions is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/execclass.htmThe webpage for the class is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/valseminar2day.htmlThe entire lecture notes are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/val2day2022.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

There is no place to hide from country risk. Even investors who stay focused on domestic stocks are exposed, sometimes unwittingly, to foreign markets. Consequently, it is important that we not only understand why risk varies across countries but how to measure it and bring it into analyses. To accompany my annual update to country risk, I summarize my findings in this session and talk about how to incorporate country risk into valuation.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/CountryRisk2017.pdfPaper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3000499Blog Post: https://aswathdamodaran.blogspot.com/2017/07/the-dark-side-of-globalization-update.htmlSpreadsheet with ERP for countries: http://www.stern.nyu.edu/~adamodar/pc/blog/ctrypremJuly17.xls Learn more about your ad choices. Visit megaphone.fm/adchoices

If the value of your business is driven by users or subscribers, having an intrinsic value model built around users may give you imperfect estimates of value if the company is young, but the model can also be used to draw out general propositions about value. These propositions can be used by investors to ask the right questions and assess value (or price) and by managers to make the right choices, when they have to make trade offs.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/UserEconomics.pdfBlog Post: https://aswathdamodaran.blogspot.com/2017/07/usersubscriber-economics-value-dynamics.htmlUser valuation spreadsheet (Uber): http://www.stern.nyu.edu/~adamodar/pc/blog/uberuserJune17.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

One critique of DCF models is that they were designed to value old economy companies and do not work for new economy firms built on users and subscribers. In this session, I show that DCF models can be adapted to value users, both existing and new, and value a company based on its users/subscribers. I use Uber to illustrate the process and the information that you need to value the company on a user basis. Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/UberUserJune2017.pdfSpreadsheet: http://www.stern.nyu.edu/~adamodar/pc/blog/uberuserJune17.xlsxBlog Post: Learn more about your ad choices. Visit megaphone.fm/adchoices

In this session, I start by defining risk and then considering the best ways to measure risk in finance.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execcf/session3.pdf(This is a blast from the past, since these are recordings of a corporate finance class that I taught in the Stern Trium MBA program in January 2016. That said, corporate finance first principles don't magically change over time, and while nothing is timeless, the lessons hold up. The class was a three-day class, with twelve recordings of about an hour and a half each. You can get the entire playlist by going here:https://www.youtube.com/playlist?list=PLUkh9m2BorqlDu2zrSN9WZ3xEp3qNgnQj The webpage for the class, with links to additional material is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastexeccf16.htmThe lecture notes for the class are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/cf2day2016.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

Uber has always been a newsworthy company, even if the news has not always made it look good. That said, the company has outdone itself in the last few months, with its legal tussles with Google on the driverless car, Travis Kalanick's YouTube argument with an Uber driver and accusations of sexual harassment all keeping it in the news. While there are some who are predicting doomsday for the company, I disagree. There are many subgroups that are critical to Uber's success (customers, drivers, regulators, engineers, managers, investors) and while any one of them could bring the company down, each group has more to lose from the company imploding than seeing it succeed. That said, the events from the last week may lead to a repricing of the company to reflect a more realistic assessment of both its potential and its problems.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/UberJune2017.pdfValuation: http://www.stern.nyu.edu/~adamodar/pc/blog/uberJune17.xlsBlog Post: http://aswathdamodaran.blogspot.com/2017/06/ubers-bad-week-doomsday-scenario-or.html Learn more about your ad choices. Visit megaphone.fm/adchoices

In this session, I began by going through the project workbook, to make judgments on who the marginal investors in a company are and then talked about how to estimate the risk free rate, before introducing the equity risk premium (with the historical and implied approaches).Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execcf/session4.pdfProject Workbook: https://www.stern.nyu.edu/~adamodar/pdfiles/execs/projworkbookJan2016.pdf(This is a blast from the past, since these are recordings of a corporate finance class that I taught in the Stern Trium MBA program in January 2016. That said, corporate finance first principles don't magically change over time, and while nothing is timeless, the lessons hold up. The class was a three-day class, with twelve recordings of about an hour and a half each. You can get the entire playlist by going here:https://www.youtube.com/playlist?list=PLUkh9m2BorqlDu2zrSN9WZ3xEp3qNgnQj The webpage for the class, with links to additional material is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastexeccf16.htmThe lecture notes for the class are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/cf2day2016.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

While it is natural for market participants to disagree about the future course of the market and the economy, the degree of divergence in today's markets is greater than in most. For every indicator that suggests that low risk in equities, there is another indicator that suggests the exact opposite. Consumers and businesses seem to be in a better mood (as revealed in confidence numbers) but they don't seem to spending accordingly. I suggest three reasons for the divergence: crisis weariness, disagreement about the magnitude of policy changes and consequences and political differences (a spill over of the partisanship that infects every thing else we do).Blog post: http://aswathdamodaran.blogspot.com/2017/06/a-tale-of-two-markets-politics-and.htmlSlides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/TaleofTwoMarkets.pdf Learn more about your ad choices. Visit megaphone.fm/adchoices

In this session, I started with the conventional regression approach to estimating betas and how the regression can yield important details about the firm's past market performance and risk attributes.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execcf/session5.pdf(This is a blast from the past, since these are recordings of a corporate finance class that I taught in the Stern Trium MBA program in January 2016. That said, corporate finance first principles don't magically change over time, and while nothing is timeless, the lessons hold up. The class was a three-day class, with twelve recordings of about an hour and a half each. You can get the entire playlist by going here:https://www.youtube.com/playlist?list=PLUkh9m2BorqlDu2zrSN9WZ3xEp3qNgnQj The webpage for the class, with links to additional material is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastexeccf16.htmThe lecture notes for the class are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/cf2day2016.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

In this last session, I used Dante's Inferno to illustrate my visions of hell in DCF valuation and followed up by summarizing what you found in your valuations.Closing Presentation: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/valclosespr17.pdf Summaries of class valuations: http://www.stern.nyu.edu/~adamodar/pc/eqrec/spr2017.xls Learn more about your ad choices. Visit megaphone.fm/adchoices

In this session, I examine the fundamentals that determine betas, and how using industry averages and correcting for differences in leverage can yield better estimates of betas not only for companies, but their business segments.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execcf/session6.pdf(This is a blast from the past, since these are recordings of a corporate finance class that I taught in the Stern Trium MBA program in January 2016. That said, corporate finance first principles don't magically change over time, and while nothing is timeless, the lessons hold up. The class was a three-day class, with twelve recordings of about an hour and a half each. You can get the entire playlist by going here:https://www.youtube.com/playlist?list=PLUkh9m2BorqlDu2zrSN9WZ3xEp3qNgnQj The webpage for the class, with links to additional material is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastexeccf16.htmThe lecture notes for the class are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/cf2day2016.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

In this session, I look at the cost of debt for a company, and how it is incorporated into a cost of capital. I also open the door to measuring returns on individual projects.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execcf/session7.pdf(This is a blast from the past, since these are recordings of a corporate finance class that I taught in the Stern Trium MBA program in January 2016. That said, corporate finance first principles don't magically change over time, and while nothing is timeless, the lessons hold up. The class was a three-day class, with twelve recordings of about an hour and a half each. You can get the entire playlist by going here:https://www.youtube.com/playlist?list=PLUkh9m2BorqlDu2zrSN9WZ3xEp3qNgnQj The webpage for the class, with links to additional material is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastexeccf16.htmThe lecture notes for the class are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/cf2day2016.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

In this class, we started by drawing a contrast between price and value enhancement. With value enhancement, we broke down value change into its component parts: changing cash flows from existing assets, changing growth rates by either reinvesting more or better, lengthening your growth period by creating or augmenting competitive advantages and lowering your cost of capital. We then used this framework to compute an expected value of control as a the product of the probability of changing the way a company is run and the value increase from that change (optimal - status quo value). This expected value of control allows us to explain why market prices for stocks rise when corporate governance improves, why voting shares usually trade at a premium over non-voting shares (and why they sometimes don't).Start of the class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/valenh.pdfSlides: http://www.stern.nyu.edu/~adamodar/podcasts/valUGspr17/session27.pdfPost class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session27Atest.pdfPost class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session27Asoln.pdf Learn more about your ad choices. Visit megaphone.fm/adchoices

In this session, I use a Disney theme park proposed investment to illustrate how to estimate earnings and cash flows for projects, and convert those into measure of investment returns.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/execcf/session8.pdf(This is a blast from the past, since these are recordings of a corporate finance class that I taught in the Stern Trium MBA program in January 2016. That said, corporate finance first principles don't magically change over time, and while nothing is timeless, the lessons hold up. The class was a three-day class, with twelve recordings of about an hour and a half each. You can get the entire playlist by going here:https://www.youtube.com/playlist?list=PLUkh9m2BorqlDu2zrSN9WZ3xEp3qNgnQj The webpage for the class, with links to additional material is here:https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastexeccf16.htmThe lecture notes for the class are at this link:https://pages.stern.nyu.edu/~adamodar/pdfiles/execs/cf2day2016.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices