**Professor at NYU Stern School of Business**

Discuss with Prof. Aswath Damodaran!

**Bio**

Professor of Finance at the Stern School of Business at New York University, I teach the corporate finance and valuation courses in the MBA program as well as occasional short-term classes around the world on both topics. My research interests lie in valuation, portfolio management and applied corporate finance. My papers have been published in many famous financial journals.Models & methodologies on this site have been shared and published with my authorization and come from my site below.

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# Prof. Aswath Damodaran's Channel: methods and tools

#### Generalized Free Cash Flow for the Firm (FCFF) Excel Model

Compute the FCFF (Free Cash Flow for the Firm) Model for a Firm with this excel spreadsheet model.588*remove_red_eye*Discussfree#### Adjusted Present Value for Optimizing Debt

Estimate an "optimal" Capital Structure for a company using the Adjusted Present Value Approach.265*remove_red_eye*Discussfree#### Implied Risk Premium in a Market

An Excel Model to calculate the implied risk premium in a market702*remove_red_eye*Discussfree#### Warrants and Management Options - Excel Valuation Model

Warrants and Management Options Excel Model for valuing options that result in dilution of the underlying stock.476*remove_red_eye*Discussfree#### Implied Return on Capital (ROC) & Return on Equity (ROE) Terminal Value

Compute the ROC or ROE implied in your terminal value calculation779*remove_red_eye*Discussfree#### Three-Stage Free Cash Flow for the Firm (FCFF) Discount Model

Value the equity in a firm with three stages of growth572*remove_red_eye*Discussfree#### Converting Operating Lease Expenses

Convert operating lease expenses into financing expenses and restates operating income and debt outstanding325*remove_red_eye*Discussfree#### Design debt (by looking at sensitivity to macro variables)

Allows you to estimate the duration of a firm's assets and its sensitivity to other macro economic variables192*remove_red_eye*Discussfree#### Estimating the Value of Financial Flexibility

Calculate the value of financial flexibility163*remove_red_eye*Discussfree#### Capitalizing R&D - Webcast

Learn how to capitalize R&D instead of having it as an operating expense.95*remove_red_eye*Discussfree#### IPO Valuation Excel Model - Spotify

A comprehensive overview of Spotify's financial performance and analysis of its IPO583*remove_red_eye*Discussfree#### Economic Value Added (EVA) vs Cost of Capital Discounted Cash Flow (DCF) Valuation Excel Model

Excel Tool for reconciling EVA (Economic Value Added) and DCF (Discounted Cash Flow) valuation models1,340*remove_red_eye*Discussfree#### Three-Stage Dividend Discount Model

Value the equity in a firm with three stages of growth1,551*remove_red_eye*Discussfree#### FCFF (Free Cash Flow for the Firm) Excel Model with exposure to country risk

An Excel FCFF Model allowing the user to enter a measure of company exposure to country risk when making a valuation613*remove_red_eye*Discussfree#### Optimum Capital Structure (Cost of capital approach)

An excel model to estimate the ideal capital structure for a corporation.430*remove_red_eye*Discussfree#### Synthetic Rating & Cost of Debt

Allows you to estimate a rating and a cost of debt for your company from the firm's interest coverage ratio530*remove_red_eye*Discussfree#### Free Cash Flow for the Firm (FCFF) Valuation Excel Model

An Excel Model to value firms with operating income that is either positive or can be normalized to be positive.1,657*remove_red_eye*Discussfree#### Merger Synergy Valuation Excel Model

This Excel Model estimates the value of synergy in a merger.1,479*remove_red_eye*Discussfree#### Merger & LBO Model Valuation Excel

This LBO model in excel analyzes the value of equity and the firm in a leveraged buyout operation.5,952*remove_red_eye*Discussfree#### Valuation: Free Cash Flow to Firm (FCFF) vs Free Cash flow to Equity (FCFE) Excel Model

Excel Valuation model that reconciles FCFF (Free Cash Flow to the Firm) and FCFE (Free Cash Flow to Equity)4,699*remove_red_eye*Discussfree#### FCFE (Free Cash Flow to Equity) Valuation Model

A complete FCFE valuation model that allows you to capital R&D and deal with options in the context of a valuation model944*remove_red_eye*Discussfree#### Betas and Leverage

Obtain a table of betas at different debt ratios795*remove_red_eye*Discussfree#### High Growth Firms Valuation Model

Value tough-to-value firms, with negative earnings, high growth in revenues and few comparables411*remove_red_eye*Discussfree#### Value of Equity in a Bank

Estimate the value of equity in a bank328*remove_red_eye*Discussfree#### Accounting Returns ROE (Return on Equity) & ROIC (Return on Invested Capital)

Compute ROE (Return on Equity) & ROIC (Return on Invested Capital) for a firm.429*remove_red_eye*Discussfree#### Free Cash Flow for the Firm (FCFF) Stable Growth Excel Model

An Excel FCFF Excel Model to Value a stable firm on the basis of free cashflows to firm.734*remove_red_eye*Discussfree#### Two-Stage Free Cash Flow to Equity (FCFE) Discount Model

Value the equity in a firm with two stages of growth1,090*remove_red_eye*Discussfree#### Measuring Accounting Returns

Learn how to measure accounting returns when wanting to estimate growth or value a specific company1,088*remove_red_eye*Discussfree#### Three-Stage Free Cash Flow to Equity (FCFE) Discount Model

Value the equity in a firm with three stages of growth727*remove_red_eye*Discussfree#### Dealing with Employee Options

Learn how to value employee options and inserting this share in the value of your equity per share.189*remove_red_eye*Discussfree#### Capital Budgeting Analysis Excel Model

This Excel Model allows you to do a basic capital budgeting analysis for a project, and compute NPV, IRR and ROI3,024*remove_red_eye*Discussfree#### Estimating a beta (Corporate Finance)

Compute and estimate a beta for a firm's stock/market index646*remove_red_eye*Discussfree#### Dividend Discount Model

A complete dividend discount model that can do stable growth, 2-stage or 3-stage valuation.1,267*remove_red_eye*Discussfree#### Discounted Cash Flow (DCF) Excel Model

This DCF Excel Model provides a rough guide to which discounted cash flow model may be best suited to your firm.1,244*remove_red_eye*1*chat_bubble*free#### Value of Control in a Firm - Excel Model

This Excel model analyzes the value of control in a firm.1,416*remove_red_eye*Discussfree#### Cash Flow Return on Investment (CFROI) for a Firm Excel Model

This Excel model calculates CFROI (Cash Flow Return on Investment).4,237*remove_red_eye*Discussfree#### Estimating the value of the option to abandon a project or investment

Determine whether a project or investment should be abandoned135*remove_red_eye*Discussfree#### Estimating Trailing 12-month Earnings number

Learn how to build a 12 month earnings quaterly report for your valuation.109*remove_red_eye*Discussfree#### Free Cash Flow to Equity (FCFE) Stable Growth Model

Value the equity in a stable firm on the basis of free cashflows to equity389*remove_red_eye*Discussfree#### Valuation of an Income Generating Property - Excel Model

This Excel Valuation Model can be used to value property generating income.1,089*remove_red_eye*3*chat_bubble*free#### Valuation Model for Tough-to-Value Firms

This model can provide valuation for more difficult firms139*remove_red_eye*Discussfree#### Comparing Dividend Discount Model (DDM) and Free Cash Flow to Equity (FCFE) Excel Models: Two Stage Valuation

This Excel Valuation model compares the DDM and FCFE models for a Two Stage Valuation1,181*remove_red_eye*Discussfree#### Gordon Growth Excel Model

An Excel Valuation Model to value the equity in a stable firm paying dividends, with stable growth635*remove_red_eye*Discussfree#### Three-Stage Free Cash Flow for the Firm (FCFF) Valuation Model

Value the equity in a firm with three stages of growth465*remove_red_eye*Discussfree#### Operating Lease Converter Excel Model

An Excel Model allowing you to convert lease commitments to debt.387*remove_red_eye*Discussfree#### Reading a 10K - Financial Statements

Learn how to read the essential information from Financial Statements532*remove_red_eye*Discussfree#### Black-Scholes converted for Binomial Tree

Converts the standard deviation input in the Black-Scholes model to up and down movements in the binomial tree.210*remove_red_eye*Discussfree#### Effect of a buyback on Earnings per Share (EPS) and Value

Assess how a buyback will affect EPS and Value136*remove_red_eye*Discussfree#### Two-Stage Free Cash Flow for the Firm (FCFF) Discount Model

Value a firm with two stages of growth on the basis of free cashflows to firm681*remove_red_eye*Discussfree#### Cost of Capital for a Firm

Estimate the cost of capital for your firm181*remove_red_eye*Discussfree#### Simple FCFF Model (Free Cash Flow for the Firm)

A complete FCFF model that allows for changing margins and has default assumptions built in219*remove_red_eye*Discussfree#### Two-Stage Dividend Discount Model

A dividend discount model for firms with two stages of growth687*remove_red_eye*Discussfree#### Converting R&D Expenses

Convert R&D expenses from operating to capital expenses.158*remove_red_eye*Discussfree#### Option Pricing Model to Value a Product Patent or Option

This program calculates the value ofa product patent or a project as an option149*remove_red_eye*Discussfree#### Valuation of Premiums

A model to value the premium you should pay for growth in either an intrinsic valuation or a relative valuation.140*remove_red_eye*Discussfree#### Effects of Restructuring on a Firm - Discounted Cash Flow

This modesl quantifies the effects of firm restructuring91*remove_red_eye*Discussfree#### Valuing Equity as an Option

An option pricing program to value the equity in a firm102*remove_red_eye*Discussfree#### Valuation: Gross Debt vs Net Debt

This model reconciles Gross DEbt and Net Debt for Valuation200*remove_red_eye*Discussfree#### Net Capital Expenditures for a Firm

Estimate the net capital expenditures for a firm, when it reaches stable growth82*remove_red_eye*Discussfree#### Dividend Adjusted Model to value Long Term Options

A dividend-adjusted model for valuing long term options.111*remove_red_eye*Discussfree#### Actual vs Potential Dividends

Compares the dividends paid to what a firm could have paid, by estimating the free cash flow to equity88*remove_red_eye*Discussfree#### Estimating the Value of the Option to Expand an Investment Project

This program calculates the value of an expansion option in an investment analysis72*remove_red_eye*Discussfree#### Likelihood that a Troubled Firm Will Fail

This model quantifies the probability of failure for troubled firms.70*remove_red_eye*Discussfree#### Dividend Adjusted Model to value Short Term Options

A dividend-adjusted model for valuing short-term options.105*remove_red_eye*Discussfree#### Estimating the Discount for a Minority Stake in a Private Business

This model can be used to estimate the discounts for a minority stake in a private business71*remove_red_eye*Discussfree#### Generalized Free Cash Flow to the Firm (FCFF) Model for Negative Earnings Firms

This model is designed to value a firm, with changing margins, revenue growth, and other parameters.81*remove_red_eye*Discussfree#### Capitalizing Leases - Webcast

Learn how to treat leases as a financial expense instead of an operating expense108*remove_red_eye*Discussfree#### Cost and Market Value of Debt Model

Excel tool for calculating the cost and market value of debt.55*remove_red_eye*Discussfree#### Estimating the Value of Delaying an Investment Project

Calculate the value of the option to delay73*remove_red_eye*Discussfree#### Valuing a Natural Resource Option

This model calclulates the value of natural resource option.74*remove_red_eye*Discussfree#### Estimating Compounded Revenue Growth Rate

This model can be used to estimate revenue rates for firms for up to 10 years113*remove_red_eye*Discussfree#### Adjusting the Cost of Equity for a Private Firm

This model can be used to adjust equity costs for firms55*remove_red_eye*Discussfree#### Estimating the Illiquidity Discount

This model can be used to estimate illiquiduty discounts for firms61*remove_red_eye*Discussfree#### Normalizing Earnings for a Troubled Firm

This model values firms with operating income that is either positive or can be normalized to be positive.54*remove_red_eye*Discussfree#### How To Estimate The Cost of Capital and Equity for a Privately Owned Business

An overview of how to estimate the cost of capital and equity for a privately owned business.26*remove_red_eye*Discussfree#### Interest Rates and Stock Prices: Looking Under the Hood!

This video analyses the relationship between interest rates and stock prices32*remove_red_eye*Discussfree#### How To Estimate The Equity Risk Premium For a Company

This video analyses and explains the process behind estimating Equity Risk Premiums for individual companies.24*remove_red_eye*Discussfree#### The Good, Bad and Ugly Side of Cash Burn

Detailed overview of cash burn, what it is, why it happens and why it matters.25*remove_red_eye*Discussfree#### How To Estimate The Cost of Capital For a Firm, Division or Project

This video demonstrates how to estimate the cost of capital using Sri Lankan hotel company Aitkin Spence as an example.42*remove_red_eye*Discussfree#### How To Estimate an Optimal Debt Ratio - Special Cases

This video will show you how to compute the optimal debt ratio for a company.13*remove_red_eye*Discussfree