Valuation

Video Lectures

Displaying all 23 video lectures.
Lecture 1
Introduction to Valuation
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Introduction to Valuation

Introduction to Class



Lecture Notes:



- Syllabus for class

- Project Description

- Introduction to Valuation
Lecture 2
Approaches to Valuation
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Approaches to Valuation

Approaches to Valuation

Introduction to DCF valuation

Firm vs Equity Valuation
Lecture 3
Valuation Riskfree Rates
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Valuation Riskfree Rates

- The Big Picture of Valuation

- Riskfree Rates

- Necessary Ingredients

- What if the government is not default free?



Lecture notes: Kennecott cashflow page



Weekly challenge # 1:

Reconciling firm and equity valuation and solution

Lecture 4
Equity Risk Premiums
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Equity Risk Premiums

Equity Risk Premiums

- What are they?

- Historical Risk Premiums

- Country Risk Premiums

- Company Exposure to Country Risk

- Implied Equity Risk Premiums
Lecture 5
Equity Risk Premia and Bond Default
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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



Weekly Challenge # 2:



Estimating country risk premiums and solution

Implied Premium versus Riskfree Rate, data and solution

Lecture 6
New ERP for September 2009
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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.



Lecture Notes:

ERP Computation Spreadsheet: 9/30/09
Lecture 7
Hybrid Securities Measurings Earnings
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Hybrid Securities Measurings Earnings

- Hybrid Securities

- Measuring Earnings: 

    - Updated values

    - Corrrecting for leases

    - Correcting for R&D
Lecture 8
Accounting fraud, Money losing, Tax rates & Cap Ex
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Accounting fraud, Money losing, Tax rates & Cap Ex

Accounting Fraud: 

    - Dealing with money losing companies

    - Tax rates

    - Cap Ex



Take the first quiz and check out the solution as well as the distribution of grades for the class.
Lecture 9
Working Capital
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Working Capital

- 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
Lecture 10
Fundamental Growth
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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)



Weekly Challenge # 4A:

Terminal Value Mechanics and solution
Lecture 11
Terminal Value
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Terminal Value

- Terminal Value: Final Thoughts

- Picking the "right" DCF Model

- Loose Ends in Valuation

    - The Value of Cash

    - The Value of Cross Holdings
Lecture 12
Other Missed Assets
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Other Missed Assets

- Other Missed Assets

- The Value of Complexity

- Defining Debt: Cost of Capital Versus Debt to Net Out

- Equity Options



Weekly Challenge # 5:

Dealing with management options and solution
Lecture 13
Valuation Examples
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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
Lecture 14
Valuing Corporate Governance Lambdas
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Valuing Corporate Governance Lambdas

- Valuing Corporate Governance

- Lambdas and Value

- The Dark Side of Valuation

    - Valuing Young Companies



Weekly Challenge # 6:


Circular Reasoning in DCF Valuation: Weekly Challenge, Daimler valuation and Solution
Lecture 15
Valuing companies with R&D
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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
Lecture 16
Analysis and Application Tests: The PE Ratio
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Analysis and Application Tests: The PE Ratio

- Analysis and Application Tests

- The PE Ratio

    - Definition

    - Description

    - Determinants



Take the second quiz and check out the solution as well as the distribution of grades for the class.
Lecture 17
PE and PEG Ratios
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PE and PEG Ratios

More on PE Ratios

- Comparing PE ratios across markets

- Comparing PE ratios across companies

- Cross sectional regressions



PEG Ratios

- Definition and Determinants
Lecture 18
PEG Ratios - Applications
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PEG Ratios - Applications

- PEG Ratios: Applications

- Price to Book Ratios 

- Value Multiples

    - EV/EBITDA and Determinants



Weekly Challenge # 7:
Analyzing the PEGY ratio and Solution
Lecture 19
Visualizing Cheap Companies - PBV versus ROE
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Visualizing Cheap Companies - PBV versus ROE

- Visualizing cheap companies: PBV versus ROE

- EV to Book Capital Ratios

- Finding the companion variable

- PS and EV/Sales Ratios

- Brand Name Value
Lecture 20
Option Pricing Redux
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Option Pricing Redux

- Option Pricing Redux

- The Option to Delay

    - Valuing Patents

    - Valuing Undeveloped Natural Reserves
Lecture 21
Valuing Equity as an Option
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Valuing Equity as an Option

- Final Thoughts on Valuing Equity as an Option

- Acquirers' Anonymous: Seven Steps to Sobriety

    - Evidence on Acquisitions

    - Acquisition Tests
Lecture 22
Acquisition Tests, Price v. Value
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Acquisition Tests, Price v. Value

- More Acquisition Tests

- Price Versus Value Enhancement

- Pathways to Value Enhancement

- The Value of Control
Lecture 23
Closing thoughts on Value Enhancement
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Closing thoughts on Value Enhancement

- Closing thoughts on Value Enhancement

- Dante meets DCF: Ten Sins in Valuation

- Project Findings



Closing Presentation