Session 11: Terminal Value, Picking the right DCF Model and First Loose Ends

In this session, we tied up our last few pieces of terminal value, with the emphasis that it is not growth that creates value, but excess returns. After briefly talking about choosing the right model to use to value your company, we started on the discussion of the loose ends in valuation by looking at how best to value cash and then moved on to the messier question of valuing cross holdings.

[Михаил-дхз]

I wanted to hear the rest of the story about your hotel reservation in Mumbai!

[brendansmith]

I wish I had listened to the Professor when he bought tesla.

[russellfernandez]

Doesn't NYU have a registration numbers?

[russellfernandez]

7:04
from where did 120 Million come from?

[ayushsharma-hrvl]

In which class sir taught us about Cross holding?? Please Reply ASAP

[MyDreamside]

i think it is not right to change the cost of equity in the future, the discounting should measure the risk of future cash flows, that's the point of discounting, if i change the discount rate in year 3, i suddendly change the risk of that cashflow, the future cost of equity belongs to the future, what i care is the risk of those cashflows now discounted at the current cost of equity. That's from my understanding . If i was aiming in pricing i would use a price in year 10 based on the cost of equity in year 10 and then discount that price with current cost of equity.