Session 6: Implied Equity Risk Premiums and Betas

[@luispacheco9683]

I have the same problems in my country with "I don't know why" specialists in finance! So many finance errors are the mainstream on valuation! Keep up with your FANTASTIC work!

[@ElectricPiya]

This is true when Mr. Damodaran says that Indian equities are overvalued. Asian paints is held by too many invesment managers that they go gaga over its PAT every quarter. Doesn't matter what the PAT is, you are still paying ₹69 for their ₹1 of PAT (EPS).

[@sebaaalbadawi9178]

Can you please explain how you used the value of the index if that is not the real market capital value...or are the cach flows divided by the index divisor

[@0Fallen0]

Really enjoyed this lecture, watched it twice so I don't miss anything!

[@Michael_NV]

1:30

[@r.a.p.h4481]

1:03:50 Discount Rates III - Relative Risk measures

[@harshitporwaliitb5268]

I have a question regarding what you explained about securitization which caused real estate market to behave like stock market. In the covid times there was a similar situation when gold was moving similar to stock market prices. why Is that? Gold is already traded and is looked as an hedge against inflation right? So why this happened?

[@julanivishal]

Calculating risk premium by this way can create a problem sir if many of the stocks in index is overvalued than r is going to be less. By this way we are finding r that are assumed by the other investors( it may not be right.)

[@simonroese2596]

The best!!!

[@designerarvid]

Come for the material on implied equity risk premiums, stay for the jokes about hyperactive over sharing gopro customers.

[@thehappypet4158]

Should we use the price that we pay to be exposed to the entire market using SPY ETF? Because the Index does not reflect a price.

[@sebaaalbadawi9178]

I have the same question...appreciate if you explain it

[@thehappypet4158]

just use the index

[@sebaaalbadawi9178]

@@thehappypet4158 And what about dividend and buybacks...

[@abdulrahmanfaqiri9375]

Hi Do you know how to find dividend and buybacks of sp500 Also, the expected growth rate for earnings

[@bhanuvohra4681]

Hello Sir, Could you please help me understand the following:- 1) high growth rate would lead to high expected equity return. Therefore shouldn’t it result in High Equity risk premium? 2) During inflation if T bond rate increases with low expected equity return, shouldn’t the Equity risk premium be low? 3) what effect does high growth rate has on expected equity return? Does it increase or decrease? 4) Are all the above points merely an outcome of the price paid? Please help me clear this doubt

[@sahilthakur5906]

Hie Aswath

[@Fitnessnatural850]

No audio heard

[@AswathDamodaranonValuation]

Give it a few minutes to process.

[@Fitnessnatural850]

@@AswathDamodaranonValuation thank You aswath.

[@heramb575]

28:40