Originally published: 27/08/2019 15:21
Last version published: 27/08/2019 15:23
Publication number: ELQ-46849-2
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Summary Course On Valuation

Valuation summary lecture to round up a Valuation Module that I carried out at NYU Stern this academic year.

This lecture is focused on giving an brief overview of valuation to support my students understanding of the topics that we have covered this year and aid them in their final projects. However, it is of equal use to those of you whom are interested in learning more about the topic and mastering it.

The lecture consists of a brief Introduction, summarising: discounted cashflow, relative valuation and contingent claim valuation, focusing particularly on intrinsic valuation.

It is followed by an explanation of the 10 different layers to valuation, which are as follows:

1. Base Year Fixation
2. Taxes and Valuation
3. High growth
4. The Cost of Capital
5. The Price of Growth
6. The "Fixed Debt Ratio" Assumption
7. The Terminal Value
8. From Firm Value to Equity Value: The Garnishing Effect
9. From Equity Value to Equity Value per Share
10. Cost of Equity v.s. Cost of Capital

To continue an analysis of data is carried out based on the statistics that my students have covered this year. Whilst throughout the video course there are examples relating to each layer, this is an additional chapter to solidify how to put such methods into practice.

To conclude, I impart my final, yet simple tips to enhance your capability to carry out valuation successfully.

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