Valuation Modeling: Excel as a tool

[@herokorai8346]

Professor Aswath is the best! He is an unsung hero in these times! Everyone trying to charge for every thing they can and he just shares his knowledge for free in humility..

[@ramjiYahoo]

True he is so generous

[@monsterboomer8051]

He is the real scholar.

[@AshayDoshi]

Yes you are right! But he isn't unsung. He is well appreciated worldwide!

[@Eljako-ls5cr]

What a great guy. Giving away his knowledge just to help others. No ego no charges. Thanks Aswath!

[@alejandrogarciacorral8217]

wake up babe, new damodaran video just dropped

[@agarpendergrass]

lmao

[@mm0dk0ur]

No words are enough to thank you for your great support in serving the world and liberating the knowledge sharing. Many thanks professor❤❤

[@richullingfivefivefive1745]

What a time to be alive. I can’t believe we can get this for free! Thank you professor.

[@omchavan99]

I valued UBS post merger before Q2 results with this sheet and bought a call option, which helped me incorporate my startup. I value your words more than anyone my uValue Ninja.

[@estebangarzonlerma]

by "helping me incorporate my startup" what do you mean? You bought the call option, made a return and the profit helped pay for the incorporation of the company or was the trade the first actionable idea for your (trading) startup? Thank you

[@phonicstory]

I found the most underrated channel on KZbin. Excellent Sir.

[@dylant22]

I have smiled throughout the entirety of this--gold. If I choose to get an MBA, it will certainly be at Stern because of you, professor.

[@HunterD510]

Sure, if you have an extra $180k to spare.

[@A7177-p1q]

Still the best channel in KZbin, thanks you so much professor

[@davidgardner4787]

Thanks so much for this. Many of us could never afford the financial education you offer to your college students. Such a blessing.

[@ebinmolloy7596]

I really appreciate the passion that you have for valuation and for all the effort you make in producing these videos and explaining your process. It's really great of you to do this.

[@Akerfeldt77]

Very generous of you to provide these. Thank you, Professor.

[@milkstermaid]

Thank you sir, others have you pay for such spreadsheets on their patreon. Truly a godsend

[@idforreg]

Prof Ashwath, From the time you'd featured my earlier company CommerceOne, I've been a keen follower. Thank you for the service you render in spreading knowledge. 🙏🙏

[@pauljones9150]

Thank you professor! I'm not a finance guy, just a computer science nerd and I listen to your new lectures when they come out :)

[@cristianmarinescu3053]

I remember I've based my Bachelor thesis quite a lot on prof. Damodaran's books, so I'm listening to this in reverence to those past times. Thank you, professor! So generous of you sharing this content online, for free.

[@annyalvarado1624]

Agradezco muchísimo su contenido, no sabe lo que me ha ayudado su video. Estoy haciendo un Diplomado en Finanzas y Gestión del Riesgo y me tocó una clase de valoración de empresas y este contenido, es impagable. Gracias por compartirlo con nosotros.

[@VirmanaMarketing]

Aswath is a national treasure. All his NYU content is available here FREE... that's crazy. The Ginzu knife commercials were the best!!!! They were great at doing everything!

[@artsiombaradach403]

Aswath you are the second best to no one !

[@RameshSharma-ri1kz]

Awesome! knowledge philanthropy. bowing down in reverence. Hats off Sir..

[@王晓康-y6g]

I like this, knowledge philanthropy!

[@michaelkeller5714]

I feel so lucky to have found Aswath Damodaran! Thank you!

[@rramach9091]

Very clear explanation. Agree with everyone that Prof Damodaran is the best at what he does

[@snassahs]

Thanks Aswath, This is worth more than gold.. I hope everyone watches this video before investing in the stock market. God Bless

[@sTefanoFigo1]

Thanks to you professor, its an incredibile opportunity to have all of this material to study 🙏

[@alexisgc19]

Thank you so much Mr. Damodaran, you're the best!

[@aseemgoyal101]

Top class content for free, many people charge 000s of $$ for a hyped but average and basic valuation courses...Hats off to you Aswath

[@usmanrahman1632]

You are a true educationist Professor!. Thank You🙏

[@thomas.02]

7:30 Iterative calculations on PC: File (top left button) -> Options (near bottom of left bar) -> Formulas -> Calculation options (should be top right)

[@khalidaljassim-xg6dx]

professser, thank you so much for your efforts, no words can express my gratitude towards you.

[@shamikb9089]

TREMENDOUSLY HELPFUL. THANK YOU Prof.🙏

[@oscarpolonio]

Thanks a lot professor for share your classes. I do appreciate it. Thanks!

[@marcosjaime7249]

Un privilegio ver estos videos. Thank you

[@kumarapillay3122]

Really thanks for the video and keeping knowledge free at these crucial times.

[@lucasestecho4227]

From Argentina, thank you very much.!!!!! I will use it with WMT tomorrow.

[@lancewendel6707]

Thank you, don't know much about finance, but your videos do help me a bit on the finance side. I am from the IT field so understand very little about what you are teaching. I still appreciate your knowledge share

[@rationalmind3785]

I learnt about you through my FR teacher Kalpesh Mehta who teach FR in JKSC CA Final Batch. He claimed Aswath is the best in valuation

[@dwipbhakti]

Great to get the precious Channel..Thanks Prof Aswath

[@Danyel307]

This is Gold, thank you Professor!

[@kazimbukhari2508]

Thanks for sharing the work you are doing.... great work!!.... small comment - Ireland marginal tax rate is 15% for large firms from 1st Jan 2024 (after adopting BEPS Pillar 2).

[@Peter-rt3fl]

Thank you. You truly are a great professor.

[@이백-w7o]

Always very helpful.. Just remarkable in checking all necessary elements of valuation!!!

[@bhargavaattada4509]

This is a valuation crash course for even a novice. Now I wish I majored in finance.

[@yurydzyubanny7713]

Question about Book Value of debt cell. If I add Long-term lease liability + long term debt + other long term liabilities from AMZN balance sheet, they don't add up to numbers in your spreadsheet and trying to understand why.

[@KJkayjae]

Were you able to figure this out?

[@taaaaaaaazzzzzz]

You dont add the Long Term Liabilities necessarily i think.. just Short Term Debt + current Portion of Long Term debt + Long Term debt + leases.

[@kunalvm]

@@taaaaaaaazzzzzz This makes no sense.. "current Portion of Long Term debt + Long Term debt" ????

[@taaaaaaaazzzzzz]

@@kunalvm it makes perfect sense. Two different positions in the balance sheet. Look at a balance sheet and you’ll see. Or google it and read an explanation.

[@taaaaaaaazzzzzz]

@@kunalvm it makes perfect sense. And it’s very common to add them together to get your total debt. Long term debt and current portion of long term debt are 2 different things on a balance sheet. Look it up or google it.

[@OPilz-sm7zk]

Thank you, you are amazing. Best greetings from Germany :)

[@supremeofkings]

thank you sir, that was a gold mine of information.

[@georgessalameh9950]

Hello, thanks a lot for all of this. About the R&D converter page, if I'm not mistaken the table with estimates for the différents industries doesn't appear on the file I downloaded today (16/02/2024). Regards

[@AswathDamodaranonValuation]

Fixed it.

[@graffitiwritersllc]

Thank you Professor... This was very helpful.

[@options.trader.]

Thank you from Argentina Professor !!!!

[@dot4G]

Going through the excel sheet I recognized that, at the time of your valuation the (Estimated value/share) was $146.67. If the excel sheet is downloaded right now, it is at 103.79 (attached). Why is this variation? Is there a variable that needs to be adjusted? I have tried to go into the "option" tab and change cell B17. It still does not adjust. Would you be able to clarify this, please?

[@indrac6085]

Thank you Prof aswath, i hope you can discuss about the cost and evaluation of mining

[@HarryLi]

Thanks for this information video! I learn a lot from it. One question I still have after this video is that: what number should I put into "Book value of debt" for a bank. A bank record all various things as interest bearing liabilities. I feel it's not quite right to put $0 here, but don't know which reporting number to look for.

[@KodierungHerz]

wait, if I'm doing this in November like you said and I'm using the 3 most recent quarters of 2024 and the last quarter of 2023 as my last 12 months, then the last 10k would be the 2023 annual report? which also includes the last quarter of 2023?

[@iRoCh-q5h]

Professor, you are the man! Thank you!

[@Ryanhess1986]

This was a great video. I would love to see a video or model on financial services companies. All of your videos are outstanding, though!

[@harshthakkar8323]

THE BEST PROF ASWATH DAMODRAN.

[@user-cj5hu9ip4d]

Question / comment: Cell B31 Sales to capital ratio for 1-5 years points to years 1 to 4 instead of 1 to 5 on the Valuation output sheet, otherwise great spreadsheet :-)

[@AswathDamodaranonValuation]

Fixed. Thank you!

[@lubsey]

ginsu knives analogy.... :Whatta bargain'...... Thank you professor

[@xavier_lucas]

2023 was a hell of a year, in the health profession i have made $250,000 before taxes as the sole breadwinner and head of household. This is a great starting point and I’m very aware how blessed we are to be in this position, but I’m always looking ahead on how to improve.

[@Paullookman]

You want to work with a money coach or financial planner, although a wealth manager will concentrate on long term, a money coach will help you with paying off all of your debts, maximize your cash flow and help you create systems and processes to direct your money proactively.

[@xavier_lucas]

I have thought about this, but what is the major difference between a money coach & financial advsior?

[@Paullookman]

A financial planner/wealth managercouls help too to create a more holistic plan for your money. They can assist you in the creation of both short and long-term goal and then help you by giving guidance on the financial decisions and opportunities you are presented with.

[@Paullookman]

Yeah get you an invaluable adviser, everyone has blind spots when it comes to their finances. I began consulting with mine in NY from WA. I have a plan in place now and began to love spreadsheets making exactly 702 thousand in the past 8 months from barely 400 grand makes me have high hopes for 2023.

[@Rachelkkk66]

Who is this person you work with? I have tried getting around me and it is practically impossible to get one that doesn’t charge exorbitantly. Can you also share what the fee structure is like?

[@yklim4699]

Prof Aswath, thanks for your updated excel which I have been using extensively. Notice that the formula of Reinvestment in Valuation Output has changed due to the new insertion of 'year lag between reinvesting and generating growth from that reinvestment' in cell B56 of Input cell. In previous version, the reinvestment used the revenue difference between next and current year to calculate. However, this updated excel uses revenue difference between previous and current year instead as default (when input 'No' in B56); and between next and current year when year lag is 0 year. May I know whether there is some variable error or it is the correct formula that rectify previous version bug? Should 0 year lag and default assumption (when stated 'No') be using the same revenue numerator variables instead? Tks for your kind advice.

[@a.e.9445]

Thank you prof! Using this for my next Seeking Alpha article!

[@greenbullmarket1182]

good day professor, i was trying to calculaye book value of debt for 2022 and 2023. there are some diiference while i calculated book value of debt . in spreadsheet you showed it as $161,574 (2023) but i calculated it as $161,062 (2023). can you please help me where i get wrong. i included Long-term lease liabilities ,Long-term debt ,Other long-term liabilities in it .

[@Puneet-c9o]

I am also getting the same number. Can someone please enlighten us here? The numbers I am considering from 10k (Page 40): Long Term Debt ($58,314) + Other Long Term Liabilities ($25,451) + Long-Tern Lease liabilities($77,297) = $161,062

[@greenbullmarket1182]

@AswathDamodaran_HELPLINE you are not professor. Don’t spam here

[@JonPr-o9z]

The problem with your calculation is that you are missing the current part of the debt and consider only the the long term, plus you are adding the "Other long term liabilities" which are no debt it is just "luck" that you get close to the actual number. That said here is my attempt to reconcile the number from the 10K : - long term debt: $58,314 (page 40) - current portion of long-term debt:$8,494 (page 58) - Short-term credit booked under “Accrued expenses and other”: $147 (page 59) - Letters of credit booked under “Accrued expenses and other”: $6,800 (page 59) - Longer term lease liabilities: $77,297 (page 40) - current portion of lease liabilities: $10,451 (page 55) It totals $161,503, $71 off from the $161,574 of the example close enough but I must be missing something. If anyone has the answer it will be very appreciated.

[@TheJoker-qn6vw]

Kindly do one for financial services companies like banks please.

[@edwardsmarquez]

Por favor me pueden indicar de donde se tomo el dato de los 85,6 mil de investigación y desarrollo? Gracias

[@erniecytam]

This is really helpful and informative. Thank you .

[@sachinrkrishnan6680]

Thanks for sharing professor!

[@alexanderk.5474]

Hero in disguise!

[@ramjiYahoo]

very very useful spreadsheet sir, having all the info in a simple spreadsheet

[@Nikhil-qd2qg]

Are you able to see spreadsheet? I am not able to open it why?

[@ilyosjonolimjonov]

may god bless you sir

[@PRINCIPLES_7]

Thank you very much as always Professor!!!

[@frankvein5126]

Great Video Prof. Much appreciated, thanks!

[@arundev1057]

I am confused with the reinvestment calculation in Terminal Value / period. Why Growth Rate is divided by ROC to get reinvestment rate ?

[@kotelnikovo]

Shouldn't we add D&A to the FCF in the Valuation Output tab? Or I am missing something? Thanks.

[@razeenislam2174]

Can you please make a video elaborating on the reinvestment part in the 'valuation output' sheet? thank you, sir!

[@minhvuvn]

Thanks Prof Damodaran

[@RonJr7700]

Has anyone got this to work in Google Sheets? One of the first things I noticed was the drop down on the 'Input' sheet for 'Industry' does not pull the data from the 'Industry Averages' sheet because the sheet is trying to pull data from a 'Master data' sheet which I can not locate. Ive opend this file in the free version of Excel but I was not able to find the 'Master data' sheet. Any help or clarification would be appreciated.

[@natchi71]

@profaswath ... i would like to ask if it is possible to use this valuation Excel tool to evaluate a business unit or country business entity ? if yes, would it be possible to explain/illustrate how it might be done ? it would be much appreciated.

[@stefanoolivotto5848]

Hi I think that there is a formula that is not working properly in the sheet "Cost of capital worksheet" B27 when in B25 "country of incorporation" is selected: the vlookup in the sheet "Country equity risk premiums" should be extended from row 181 to row 195

[@jamesmoloney4343]

Hello Professor Damodaran, I noticed that the cells in the lookup table for Approach 3 on the Cost of Capital Worksheeet is hard coded with various percentages that are added to the risk-free rate. Can you tell us where to find the source data for those percentages? I assume they will change over time. Thank you!

[@AswathDamodaranonValuation]

They are based upon the histogram of the costs of capital of all publicly traded firms in the world that I update at the start of every year. You should be able to see the most recent year’s update in the data updates at the start of the year.

[@innerscorecard9433]

I am doing something wrong. I downloaded the template and ran it without changes, but i get a sub$100 value for the value of AMZN. Any ideas or things to check?

[@alokjr]

thank you for sharing this guide. I welcome this video...

[@ksrini74]

Dear Professor, great video sir and your knowledge sharing enlightened me so much. some times I face challenges to estimate the Debt. Some times could not match your number Any guidance on this?

[@marcoaraujo4771]

Thank you very much Professor!

[@taaaaaaaazzzzzz]

If I capitalize r&d, will the spreadsheet account for that with the operating profit? Because if I use the operating profit or ebit from the 10k, r&d is already subtracted, so I don’t want to double count it.

[@taaaaaaaazzzzzz]

I love the spreadsheet but there are 2 things I am uncertain about. Is there no need to add capex and depreciation & amortization because of the sales to capital ratio? Because I don’t see depreciation and amortization added to my fcff‘s, and I don’t see an option to add capex. Also, does the beta in the detailed coc variation account for the debt/equity ratio of the company?

[@MaximMeshkvichev]

Thank you for this wonderful video & material - a question on R&D Conversion. If a company releases R&D figures where part of the total has already been capitalized, and the proportion is known, should only the OpEx R&D figures go into the converter, as the capitalized portion will already been assumed as part of the other inputs, or does this skew the R&D data without ever considering the already-capitalized expenses? Thanks

[@yoreshin]

Thank you very much! Can I use this spreadsheet for a private company valuation and what should I input for stock price if we have no idea with the company owner what is the current valuation and at what price we should price our business at?

[@AswathDamodaranonValuation]

Enter the book value of equity per share (or input one share in the share count and the aggregate book equity) in the share price cell. The spreadsheet uses the stock price only if you use the detailed cost of capital approach. Go the cost of capital options, and choose one of the other approaches, and it should work.

[@yoreshin]

@@AswathDamodaranonValuation Thank you very much! You are the best )))

[@JosephCai-q1f]

I have not finished reviewing all the worksheets, but i think there is a mistake in the page R&D converter, the tax benefit of expensing all the R&D expenditure is miscalculated.

[@GarbageGoober.]

Great video! Just curious as to how you all come up with your sales to capital ratios? I often feel like I’m just pulling a number out of a hat based on this year and previous years.

[@AswathDamodaranonValuation]

It is the weakest link, since it is purely empirical. That is why I have computed all of the variants of sales to capital ratio (average and marginal) by industry group and for the company.

[@RRDPereira]

That’s amazing!! Thanks a lot

[@vikramnaik6227]

Hello Professor, first thanks for sharing your wealth with us. I have one question about the excel based valuation tool? How does it account for fixed assets like land parcels etc. Some companies in India have land parcels when valued at market rate they could go above the companies market cap. Please guide. Thanks

[@markkinkle7038]

You are amazing! Thank you, thank you, thank you!

[@stefanoolivotto5848]

Hi, many thanks for the excel model, it's very useful! Just a question, how should I consider in the file dividend payments?

[@shekharkhochare6478]

Spreading this knowledge for free ..❤

[@rriehle]

Appreciate the sheet and thanks for the clear video. I look forward to trying it. Question: Is the account for a forecast of how the corporate tax rates can change in coming years? I believe they were lowered in US and that is due to expire, so that’s why I’m curious if it’s a factor and accounted for. Thanks again.

[@ricardof1448]

Could you share some more information on the sales to capital ratio? I’m valuing a growing p&c insurer and the standard 1.5 ratio is giving me a negative FCFF. Not too sure what it means and I’d like to understand it better. Thanks!

[@TomWong999]

does any one knows where did the “Cross holdings and other non-operating assets” value 2,954 come from?

[@harshpatel6848]

Here's how to get the cross holdings Page 47, fair value of financial instruments Equity warrants of $2100 million in 2022 and $2200 million in 2023 Page 49 investments Carrying value of investment in 2022 was $715 Mil and in 2023 was $754 Mil Adding them together 2022 - $2815 Mil 2023 - $2954 Mil Hope this helps

[@dipeshskhara_]

Hello everyone. Can anyone tell me how Prof. Damodaran got figures of Operating Lease Commitments from Amazon 10K? I'm unable to figure it out

[@YogiDaBuffalo]

24:53 "Well again, I'm a full service operation" Classic lol. Thanks for the laughs professor.

[@anomaliesanonymous]

And to think people in America gleefully pay $100k for a humanities degree. This content alone unlocks potential millions in investment growth

[@micheltguarin4404]

Thank you Professor!