Aswath Damodaran

Aswath Damodaran
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  • Entrepreneurship
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I teach corporate finance, valuation and investment philosophies at the Stern School of Business at New York University. I have online versions of all three courses here, as well as other finance-related videos. 1. The Corporate Finance Online playlist has an introductory video and 36 sessions that cover all of corporate finance (at least as I see it). 2. The Valuation playlist has 25 sessions that cover valuation approaches, issues and questions.3. The Investment Philosophies playlist has sessions that cover different investment philosophies.4. The Accounting and Statistics playlists reflect my quirky and unorthodox introductions to two disciplines that are critical to my valuation and corporate finance classes.5. The Blog Posts playlist has sessions that go wit my blog posts and reflect my standing as a dabbler, rather than expert, in all things finance-related. If you need the supporting material for any of the classes, check the links below.Links:Corporate finance materials: http://www.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.htmlValuation materials: http://www.stern.nyu.edu/~adamodar/New_Home_Page/equity.htmlInvestment Philosophies: http://www.stern.nyu.edu/~adamodar/New_Home_Page/invphil.htmBooks: http://www.stern.nyu.edu/~adamodar/New_Home_Page/public.htmMy website: http://www.damodaran.com Unofficial fan audio feed — not affiliated with or endorsed by the original creator. All content belongs to its respective owner.

  1. 9h ago

    Session 25: Valuation Inputs

    In this session, we continued on the question of how best to value a company by first looking at the four key components of value - cash flows from existing investments, growth in the future, discount rates and the terminal value. With cash flows, we noted the contrast between cash flows to equity and cash flows to the firm, with the former being after debt payments and the latter before. With discount rates, we argued that the same discount rates that we computed for investment hurdle rates can be used in valuation, with the caveat that these discount rates will change over time, as a company changes. While you can adjust betas, costs of debt and debt ratios, a simpler way to target a cost of capital in stable growth is to look at the median cost of capital for companies. The median cost of capital for a global company now is about 7.5%, in US dollar terms. With growth, the key is recognition that growth comes from what companies do in terms on how much they reinvest and how well, rather than from outside sources. Finally, for terminal value, I argued that the growth rate in perpetuity has to be less than or equal to the risk free rate.Slides: https://www.stern.nyu.edu/~adamodar/podcasts/cfspr22/session25slides.pdfPost class test: https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session25test.pdfPost class test solution: https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session25soln.pdf Learn more about your ad choices. Visit megaphone.fm/adchoices

    Session 25: Valuation Inputs

  2. 13h ago

    DataUpdate 9 for 2018: Dividends, Buybacks and Cash Balances

    The end game for every successful business, if you are an investor, is the harvest phase, where you collect cash flows from it. That is the role of dividends in corporate finance, but done right, it should be a residual cash flow that grows as a company ages. In practice, at many companies dividend policy is set on auto-pilot, driven by inertia (past dividends) and me-too-isms (what the rest of the sector is paying). I chronicle the shift from dividends to buybacks not just in the US, but globally, and report on dividends and buybacks across regions and sectors.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/dataupdate9for2018.pdfBlog Post: https://aswathdamodaran.blogspot.com/2018/02/january-2018-data-update-9-dividends.htmlData Links:1. Dividends, Buybacks and Cash Balances, by Country: http://www.stern.nyu.edu/~adamodar/pc/blog/CountryDividends2018.xlsx2. Dividends, Buybacks and Cash Balances, by Sector: http://www.stern.nyu.edu/~adamodar/pc/blog/SectorDividends2018.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

    DataUpdate 9 for 2018: Dividends, Buybacks and Cash Balances

  3. 17h ago

    In Practice Webcast 7b: Estimating Cost of Capital for a Privately Owned Business

    The models that we use to estimate cost of equity and capital in finance are built for publicly traded company, with diversified marginal investors and observable market values for equity and debt. With private businesses, owners/potential buyers tend not to be diversified and there are no observable market values for equity and debt. In this session, I talk about how to overcome those challenges:Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/TotalBetaInPractice.pdfTotal Beta dataset: http://www.stern.nyu.edu/~adamodar/pc/datasets/totalbeta.xls Learn more about your ad choices. Visit megaphone.fm/adchoices

    In Practice Webcast 7b: Estimating Cost of Capital for a Privately Owned Business

  4. 20h ago

    Session 27: Value Enhancement

    In this class, we started by drawing a contrast between price and value enhancement. With value enhancement, we broke down value change into its component parts: changing cash flows from existing assets, changing growth rates by either reinvesting more or better, lengthening your growth period by creating or augmenting competitive advantages and lowering your cost of capital. We then used this framework to compute an expected value of control as a the product of the probability of changing the way a company is run and the value increase from that change (optimal - status quo value). This expected value of control allows us to explain why market prices for stocks rise when corporate governance improves, why voting shares usually trade at a premium over non-voting shares (and why they sometimes don’t).Slides: https://www.stern.nyu.edu/~adamodar/podcasts/valUGspr22/session27slides.pdfPost class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session27Atest.pdfPost class test solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session27Asoln.pdf Learn more about your ad choices. Visit megaphone.fm/adchoices

    Session 27: Value Enhancement

  5. 1d ago

    Data Update 8 for 2018: Debt and Taxes

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    Data Update 8 for 2018: Debt and Taxes

  6. 1d ago

    In Search of a Steady State: Inflation, Interest Rates and Value

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    In Search of a Steady State: Inflation, Interest Rates and Value

  7. 1d ago

    Capital Structure (updated for January 2018)

    In this spreadsheet, I compute the cost of capital and firm value, at different debt ratios, with the intent of finding the optimal mix. It reflects the changes and constraints on debt in the 2017 tax reform act.Spreadsheet: http://www.stern.nyu.edu/~adamodar/pc/capstru2018.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

    Capital Structure (updated for January 2018)

  8. 1d ago

    Session: Closing Session

    In this session, I use the findings from project analyses to review the entire class, from corporate governance to valuation. I close by going back to the big picture of corporate finance, presented in the first session, and check on whether the objectives of the class have been accomplished.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/ProjSumm22.pdfSummary of project findings: https://www.stern.nyu.edu/~adamodar/pc/cfanalysis/cfspr22.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

    Session: Closing Session
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About

I teach corporate finance, valuation and investment philosophies at the Stern School of Business at New York University. I have online versions of all three courses here, as well as other finance-related videos. 1. The Corporate Finance Online playlist has an introductory video and 36 sessions that cover all of corporate finance (at least as I see it). 2. The Valuation playlist has 25 sessions that cover valuation approaches, issues and questions.3. The Investment Philosophies playlist has sessions that cover different investment philosophies.4. The Accounting and Statistics playlists reflect my quirky and unorthodox introductions to two disciplines that are critical to my valuation and corporate finance classes.5. The Blog Posts playlist has sessions that go wit my blog posts and reflect my standing as a dabbler, rather than expert, in all things finance-related. If you need the supporting material for any of the classes, check the links below.Links:Corporate finance materials: http://www.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.htmlValuation materials: http://www.stern.nyu.edu/~adamodar/New_Home_Page/equity.htmlInvestment Philosophies: http://www.stern.nyu.edu/~adamodar/New_Home_Page/invphil.htmBooks: http://www.stern.nyu.edu/~adamodar/New_Home_Page/public.htmMy website: http://www.damodaran.com Unofficial fan audio feed — not affiliated with or endorsed by the original creator. All content belongs to its respective owner.

Information

  • Creator
    Aswath Damodaran
  • Years Active
    2026
  • Episodes
    834
  • Rating
    Clean

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