Business Valuation With Aswath Damodaran

There are as many models for valuing stocks and businesses as there are analysts doing valuations. While we often talk about the differences across valuation models, we seldom talk about what they share in common. In this seminar, we hope to emphasize the shared foundations of valuation approaches and how to bridge differences among them. The first part of the seminar will cov er the discounted cash flow valuation, and the estimation issues that come up when estimating discount rates, cash flows and expected growth. In addition, it will look at value enhancement through the prism of discounted cash flow models. The second part of the seminar will focus on what we term the loose ends in valuation and follow up by looking at “difficult – to – value” companies across the spectrum (life cycle, sectors). The third part of the seminar will examine relative valuation, i.e., the valuation of assets/businesses by looking at how similar assets/businesses are priced by the market

Day 1

• Categorizing and Responding to uncertainty

• Estimation versus Economic Uncertainty

• Micro versus Macro Uncertainty

• Discrete versus Continuous Uncertainty

• The Evolution of Uncertainty

• Forecasting in the face of uncertainty

• Payoff is greatest where there is the most uncertainty

• A COVID Break: Market Overview

• Valuing the Market: COVID effect

• Valuing Individual Stocks: A Post-Corona Version

• Value of Company in Unstable environment

Day 2

• The Discounted Cash Flow Model

• Setting up the Model

• The Big Picture of DCF Valuation

• The Discount Rate Question

• Risk premiums and Betas

• Cash, Cross holdings and other assets

• The Value of Control, Synergy and Transparency

• The Liquidity Discount

• Employee Stock Options Challenges in Valuation

• Valuing young, growth companies

• Valuing mature companies in transition

Day 3

• Risk: The Cost of Capital - Global

• Your choice on cost of capital & the failure rate

• A Crisis hits.. Damage assessment on March 20, 2020

• A Come back or False Security?

• A Flight to Safety? Treasuries

• Divergent Stories: Oil and Copper

• Crisis Asset: Gold and Bitcoin

• The price of risk: Determinants

• Bond Market Default Spreads: The COVID crisis

• An Equity Market Price of Risk

• The 2008 Crisis

• The Price of Risk: Equities

• Equities: Most & least damaged Industries

• Valuation after COVID

Day 4

• The Bermuda Triangle of Valuation

• Investment Regrets and Disagreement

• Estimating Cash Flows, Growth Rates and Growth Patterns

• The Terminal Value

• Valuing declining and distressed companies

• Valuing cyclical, commodity, financial service and private companies

• Relative and Comparable company valuation

• Deconstructing multiples