Session 10: Cash Flows to the firm and Equity & first steps on growth

In this session, we began by tying up loose ends on getting from earnings to cash flows, starting with what should go into net capital expenditures and change in working capital, before starting on our discussion of free cash flows to equity. We then started on our discussion of growth, with a specific focus on why historical growth rates can be sensitive to time periods used, averaging approach and the metric of choice (revenue, EBITDA, net income, EPS).
Start of the class test: www.stern.nyu.edu/~adamodar/p...
Slides: www.stern.nyu.edu/~adamodar/p...
Post class test: www.stern.nyu.edu/~adamodar/p...
Post class test solution: www.stern.nyu.edu/~adamodar/p...

[@arielmansouri2777]

Professor, where can we find the weekly valuations you give your class?

[@rohanumate]

💖

[@augustusg857]

how do you amortize the r&d and the acquisitions??

[@leonardoghini1782]

I think the more easy way is using the tools he provides in the All-in-one Valuation Model on his website. Here is the link: pages.stern.nyu.edu/~adamodar/New_Home_Page/eqspread.htm

[@arielmansouri2777]

look at session 9

[@harshsachwani5182]

Professor, while calculating non debt Current liabilities, we should exclude current maturities of long term debt because same is included while calculating cost of capital. But short term debt (cash credit facility etc) are not included in calculating cost of capital. Then why are we removing the same from current liabilities as well??

[@kostistheo9440]

in my point of view any kind of debt(leases included) should be considered into calculating cost of capital. In case a portion of it is not included in estimation of debt and then cost of capital then it should be added into current liabilities function

[@imzan3650]

Can you please enlarge the class video and minimize the slides? That way the lectures become much more engaging.