Session 2A: Valuation Inputs - Discount Rates

In this session (first half of afternoon session, day 1), I looked at how best to estimate risk free rates in different currencies and the fundamentals that determine relative risk (beta), key ingredients in valuation.

(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:
The webpage for the class is here:
The entire lecture notes are at this link:

[nlucianohchaves]

Another great class Professor A Damodaran; thanks for sharing your knowledge with us !

[davidbrown]

Great stuff Prof. For R&D Capitalisation could you share what the treatment will be for the Taxes, Opex will reduce which means taxes may need to change, and since the accounting standards and indeed the tax standards will not change to correctly reflect R&D how do you adjust for the fact that taxes will change on the updated books but actual cash taxes will not. Do we capitalise the additional (non cash)Taxes as well?

[subhammatolia]

Are all contractual commitments consider as debt ?
Example - Salary payments are also contractual by the offer letter (engagement letter). If a company estimates on an average employee works for 5 years with the organization, they can discount the future salary payments and treat it like debt. But such treatment will be wrong.

[Arshisit]

Aswath pls just tell me where to put my money and we can skip all of this. I won’t sue you if it goes wrong. You have it in writing now.

[rodrigoalbuquerque]

What is the student in the front drinking? So many cans...