Session 3: First Steps on Intrinsic Value скачать в хорошем качестве

Session 3: First Steps on Intrinsic Value

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. We began our intrinsic value discussion by talking about the weapons of mass distraction. If you want to read the blog post I have on the topic, try this link: http://aswathdamodaran.blogspot.com/2... 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. In particular, we broke down risks into different types and argued that only some of these risks belong in discount rates, if investors are diversified. Next session, we will start with a discussion of risk free rate, a foundational number that will drive the rest of our calculations. I have attached a post class test for today, with the solution, but I think that four of the questions relate to risk free rates, which we have not covered yet. So, if you want to wait until Wednesday’s class, you might have an easier time. Start of the class test: http://www.stern.nyu.edu/~adamodar/pd... Slides: http://www.stern.nyu.edu/~adamodar/po... Post class test: http://www.stern.nyu.edu/~adamodar/pd... Post class test solution: http://www.stern.nyu.edu/~adamodar/pd...