Session 3: Intrinsic Valuation - Baby Steps

In this session, I started out by laying out the outlines of intrinsic valuation and two ways in which you can do DCF. I then looked at the contrast between valuing equity in a business and valuing a business, and used that contrast to emphasize the consistency principle and lay out three broad DCF pathways - the dividend discount model, a FCFE model and a model for valuing the firm.

[rahhh]

I will transfer to NYU STERN next fall 2019 semester just to take your valuation class.

[nitinsagar]

professor this is awesome stuff, Hope I would have come to know earlier about your lectures

[sankalpjain]

I had a basic doubt, if we are buying a company, we are buying the whole company, which includes the debt as well, then why value only equity ?

[sofiahamilton]

When should you use a firm level valuation vs an equity valuation?

[caelomarroquin]

What was the answer to get from firm value to equity value? I couldn't hear what the student answered. Was it "C", subtract the value of any debt that was included in the cost of capital calculation?

[pritikane]

Is it possible to add video feed of the class along with the slides instead of just audio ?

[Naked_Snake]

Your name actually is included in the Microsoft Office dictionary since it does not underline it in red. Congratulations!

[IgorZilber]

The PDF of slides seems to be corrupt. :( Can't open it.

[Kig_Ama]

unfortunately the audio sound level is far too low.

[Михаил-дхз]

Mr. Damodaran, can I weigh an intrinsic valuation with an asset-based one for a single, non-diversified entity? Or do I have to choose?

[terukwh]

I still can't wrap my head around why interest expense would be added to cash flows to comprise total FCFF.

[babyshark]

Professor can you help fix the PDF Slides link. The file is corrupt. Thank you!

[abhisheknayan]

slide file not opening, pls fix it. thanks:)

[rajjisep]

you are always going fast and hard to follow