Sets up the foundations of intrinsic valuation, with a contrast between valuing a business and valuing the equity in that business.
Пікірлер: 172
@MegaSyncmaster7934 жыл бұрын
His voice is ASMR. There's just something about his cadence. I feel like I'm about to reach valuation nirvana just by listening to him.
@jaap82324 жыл бұрын
Very soothing indeed!
@shwetanksinha11423 жыл бұрын
True, hearing feels like seeing valuation from different glasses.
@brokuhackson54363 жыл бұрын
It’s the sound of your hands being turned to diamonds.
@nickmhc3 жыл бұрын
Become one with the gains ☸️☯️
@shwetakhanduja40793 жыл бұрын
Haha, couldn't relate more.
@3m0k1d4evr5 жыл бұрын
Love this guy’s face, voice, and sweater
@TheBanterCity4 жыл бұрын
Yeah, he's attuned everything perfectly to get his message across
@elnetini3 жыл бұрын
I love the leather bracelets. Very neo-hippieish
@82zerox3 жыл бұрын
@@elnetini Can i find this slides on his personal website??
@zuma4047 жыл бұрын
A great teacher is one that can take the most complex idea and explain it in the most simplest way. Thank you for the value you give us!
@yuchaofan3 жыл бұрын
This man is the oogway of finance
@digitalabhi59923 жыл бұрын
blessed to learn from valuation god himself . he could sell this knowledge at very high price but his purpose was so clear . he just want everyone to learn and grow in life , I don't know that people like you exist . I just love every lecture you posted . you are the best teacher who can teach even someone who teaches valuation himself .
@thefrugalinvestor95962 жыл бұрын
This is just pure gold. So lucky to get my hands on this series.
@kailashnair44472 жыл бұрын
The confidence in his voice is gorgeous. The way he says every word conveys certainty and you know he knows what he is saying "no gas".
@Sokrabiades2 жыл бұрын
Setting aside the topic, this guy is an excellent teacher. He is no joke.
@davidjohansson14163 жыл бұрын
How is this free?! I adore this man. He is my new sleeping music.
@alvinbrewster15138 жыл бұрын
You are a gifted teacher!
@02mba-thesisonly622 жыл бұрын
00:52 the essence of intrinsic valuation: (1) cash flow (2) growth (3) risk 01:09 discount of cash flow valuation ≠intrinsic valuation 01:18 intrinsic valuation is designed for "cash flow generating" assets. [can value a start-up company. cant value an art piece] 01:54 intro of "discount of cash flow valuation": (1) present value of the expected cash flow on that asset 02:32 2 ways to set up a "discount of cash flow valuation": (1) expected cash flows, look at all possible(good or bad) outcomes. the "discount rate" is how you adjust the risks, higher "risks" with higher "discount rates" than save the assets. 03:08 adjust the "discount rate" or adjust the "cash flow" for risk 03:26 risk-averse for "certainty (risk-free) income 04:31 for a company to have value, its cash flows have to have value at "some point in time". 07:07 value either the Equity of the business or the entire business 07:54 the value of equity(cost of equity) = cash flow to equity discounted back at that rate of return 09:53 2 ways to value equity: (1) value equity directly by taking cash flow to equity & discounting at the cost of equity (2) value equity indirectly by valuing the business and subtracting out debt 10:13 first principles in valuation: never mix and match cash flow don't discount cash flow to equity the cost of capital don't discount cash flow of business at the cost of equity. make sure your cash flow & discount rate are matched up. 10:52 intrinsic valuation = valuing companies based on their specific characteristics 10:59 discounted cash flow valuation = a tool to estimate intrinsic value, need to estimate expected cash flow & adjust the risk (either by replacing the expected cash flow with certainty equivalents/ or adjust the discounted rate for risk) 11:12 have to make a choice: (1) valuing the E (2) valuing the entire business that choice will govern how you estimate the CF & discount rate you use.
@siddharthsadavarte142 жыл бұрын
P
@ansh27712 жыл бұрын
thank you
@vaishnavipillai48 Жыл бұрын
thankyou
@nailanteikamotho37716 жыл бұрын
These lessons are excellent. And free! Much appreciated.
@sumitmsn24 жыл бұрын
Wooowww.. Simplicity in the most complex topics. Damodaran sir did in 15 min what my prof couldn't in entire semester. Thank you sir.
@nicksmith8376 жыл бұрын
Absolutely an incredible pedagogue, thank you for sharing this level of knowledge!
@vtwanderer076 жыл бұрын
Professor Damodaran makes me regret not going to NYU for my MBA
@maroselful6 жыл бұрын
I appreciate your work and will to inspire others very much, thank you!
@sushmitajoshi41113 жыл бұрын
Such beauty in teaching the concepts! Much like a story that you just want to keep listening to.
@goethemephisto3 жыл бұрын
Clear, simple, and to the point!
@rajaking27892 жыл бұрын
Your new messenger for the corporate world
@animmeshgupta26822 жыл бұрын
Omg! What did I just stumble upon? I’ve been learning how to read and study annual reports and financials, when I stumbled upon this. Thank you so much sir. I can’t believe this is on KZbin for everybody.
@govindgoel2442 Жыл бұрын
Can you tell me this type of several channel where I can learn finance modeling and research report making. Right now I am in second year of college gupta ji. I wanna be investment banker if you you can give me your telegram (optional) that is more appreciated...
@shazislam77203 жыл бұрын
This man keeps things simple but highly effective. Respect.
@rajaking27892 жыл бұрын
Correct
@tasneemhegde95883 жыл бұрын
Absolutely clear explanation of something that is tough to understand.... Thanks Mr damodaran
@24Elliottwaves3 жыл бұрын
Just wondering why some people did dislike this amazing tutorial? They should have posted constructive comments if there is something they want to add or discount.
@darwinperezdepablo749 Жыл бұрын
This is such a great video. Complex topics that are purely simplified.
@bikashpaul88092 жыл бұрын
A great teacher....I learn a lot from him. Thank you sir.
@marcn18816 ай бұрын
This is of immense value (no pun intended)!!! Thank you very much for sharing these amazing series and helping everyone become a better investor professor!
@richpet81652 жыл бұрын
Thank you for making this valuable videos. I am grateful for it!
@mi12n11 ай бұрын
Anyone else need to watch the course 6x to grasp the concept? I do. Amazing we can have access to this great lecture for free!!
@vikaskumarkancharla31515 жыл бұрын
ITS A GIFT TO THE STUDENTS OF THE WORLD !!
@chrisc97252 жыл бұрын
This is what a Master looks and speaks like.
@alexandervalladares25015 жыл бұрын
Dr. Damodoran you are amazing... Taking my FMVA certification from The CFI Institute and this is way better.
@FaizanAhmad-eo3oe3 жыл бұрын
Hi Alexander. I wonder if you've taken financial modeling as a career, if yes, then how is it going for you?
@lenniyovita3661 Жыл бұрын
what a great Professor... thanks Prof Damodaran..
@surianath52302 жыл бұрын
Listening to this guy makes me feel smarter already
@tpanand638 жыл бұрын
Excellent - very simple and clear explanation to the concepts.
@khms10003 жыл бұрын
sir, i don't have much finance background but i want to do valuations for my ideas. can you guide me what else should i study? i have engineering background.
@anuragpant25452 жыл бұрын
@@khms1000 hey bro . Message me in insta I think I can help you . My insta handle - Pantanurag999
@rajeshgupta68748 жыл бұрын
Thanks for educating.
@hrishi_tАй бұрын
Soothing sound 💙
@ABCD-fv4bf4 ай бұрын
A boon to an entire generation Thank you damodaran sir
@literaryartist14 жыл бұрын
*Thank you for this gift. The series is phenomenal and best of all accessible. I have picked up 4 or your books but haven't gotten around to reading them. I will be doing that very soon. But for now thank you for this.*
@anvesh872 жыл бұрын
pls share book names
@literaryartist12 жыл бұрын
@@anvesh87 1. Investment Valuation: Tools and Techniques for Determining the Value of Any Asset 2. Investment Philosophies: Successful Strategies and the Investors who made them Work 3. The Dark Side of Valuation: Valuing Young, Distressed and Complex Businesses by Aswath Damodaran
@vipulpanwar78168 жыл бұрын
Thanks a lot Professor for sharing your videos here. Really helpful for global student community.
@krishnakishore10836 жыл бұрын
Krishna Kishore excellent......thanks a lot professor
@nicholasmarchant7816 жыл бұрын
Incredible delivery
@tanyongsheng45613 жыл бұрын
Thank you for the sharing. May I know the difference of assumption needed to be made when calculating COST OF EQUITY using (a) CAPM model, (b) Dividend growth model and (c) Equity payout method (e.g. dividends - share issued + treasury purchased)? And I am curious since these 3 methods always lead to different answers, which method the best to apply or need to depend to the circumstances?
@goruloveguy7 жыл бұрын
Thank you , love your online session. Very clear.
@Zigr-Inc2 жыл бұрын
Amazing brother great breakdown
@ganeshkamath85508 жыл бұрын
Dear sir i understand DCF is one of the tools available to arrive at intrinsic value can you suggest few more tools available under intrinsic valuation approach. Further we arrive book value per share based on Net asset value method under which valuation approach it will be covered. Since Intrinsic approach is based on cash flows and relatives approach based on comparable. Kindly advice
@compilations6358 Жыл бұрын
Hi Aswath, I am coming from zero background in finance. I liked your google talk so i wanted to learn more in detail. But In this lecture you directly jumped into discounted cashflow and start using technical term like expected value and risk-free. I understand you want to be complete in your statement, but I would appreciate if you can make a lecture series for more common people like me explaining or removing the complexity of these terms. Like those talks at Google. Since i know some maths, i understand that expected value means mean value, but i couldnt understand the risk - what exactly it is. Its hard to wrap my head around it. Please consider making video which is easy to consume. I am writing this because i believe you are a good teacher. Big Fan!
@AhmedMostafa-gu8ot Жыл бұрын
One simplified way to look at risk is as the standard deviation of returns from the mean.
@Learnitall0012 жыл бұрын
This is gold.
@mahadevanc.r98952 жыл бұрын
👍👍👍 Great Session....
@ayushgoyal3615 жыл бұрын
thanks for the lessons
@ajayranade46803 жыл бұрын
Fantastic sessions
@user-almighty_is_here_now Жыл бұрын
Superb, brother Damodaran...
@jkj1459 Жыл бұрын
EVERYTHING GOES ABOVE MY HEAD !!! OMG
@justducky85082 жыл бұрын
Are there any courses I can engage in to excel my trading and financial literacy altogether?
@jinaygala41703 жыл бұрын
YOU SHOULD HAVE 10 MN SUBS MAN SO GOOD CAME HERE AFTER RACHNA RANADE MAM
@sangaylala19243 жыл бұрын
Same
@ChiChi-sw5iu3 жыл бұрын
No one: Me to Sir Aswath : YES MASTER 👁👄👁
@amingilani5 ай бұрын
Thank you for this video. Requesting to include an example in the video for this evaluation,
@tourist30666 жыл бұрын
Is there anywhere any actual company being valued .That would be easier for some to understand.
@varunasokan63532 жыл бұрын
Whenever I hear him talking, I feel like he's telling me " I'm not angry with you, I'm just disappointed "
@goruloveguy7 жыл бұрын
Thank you
@arihantsethia72702 жыл бұрын
Is there any source to get those ppt slides or images which sir has shown in the video?
@notoriousbibs39767 жыл бұрын
Thank you fine sir.
@fadhilhabibie63924 жыл бұрын
That dividend discounted model blew my mind.
@sobriquet50163 жыл бұрын
why's that?
@felipevazquez71372 жыл бұрын
Amazing thank you
@sathsah15932 жыл бұрын
ThANK YOU SO MUCH!!! PROF. DAMODARAN
@lalitsharma5666 Жыл бұрын
Sir I'm very interesting to know about Valuation sir from where I have to start my journey what is the first Step lecture I would start , Can i go for this whole lecture sries
@shubhangidad66333 жыл бұрын
I like the way u are making these broad terms simple and understandable. I want you to make videos on financial modelling too, it will be easy for us to gain knowledge.
@aheeshmantha73604 ай бұрын
Aswath is the real GOAT
@aruncharles Жыл бұрын
The Intrinsic value of Damodaran must be over the roof
@Ashutosh63656 жыл бұрын
Will someone help me with this? According to sir, when we sit for estimating the cash flows (2:32 min), you take all possible considerations in your estimation, the good and the the bad ones. Once i have a list of estimated cashflows, i take an expected value of these cashflows(assuming it to be an average of all estimates for each year). If we take an average of all good and bad cashflows, wont the cashlfows be risk adjusted, cause now they show the bad possibility also? Which is am assuming is my risk.
@mohd.amirjamalshaikh70206 жыл бұрын
While considering good and bad scenarios, you still have risk factor associated with your cashflows. Say, in your case, you are averaging out cashflows for all years, each year has its risk factor associated with it and you are not cancelling that out.
@freedomprayer0075 жыл бұрын
When you average the cash flows you arrive at an estimate.( Expected Cash flow ) How 'certain' that cash flow will be is risk.
@Juanijia5 жыл бұрын
AMEN
@Madhatter9756 жыл бұрын
Thank you...
@satyamshubham66762 жыл бұрын
Hey, this video is super cool. Is there any book you would recommend to read in order to get an in depth knowledge?
@Frugal_Invest2 жыл бұрын
I'd say a combination of multiple books, and not one in particular.
@satyamshubham66762 жыл бұрын
@@Frugal_Invest can you give some examples?
@shelly88442 жыл бұрын
@@satyamshubham6676 he has many published books you can check those out
@himanshujain28733 жыл бұрын
Professor Damodaran I am facing a problem with finding data related to risk free rate and equity risk premium(ERP) and relative risk or beta I am form india and I'm trying to value the finance stock (bajaj finance) Please sir try to help me to find this data and how i can find internsic value of finance stock or banking stock please sir Thanks Professor Damodaran sir
@nathanbarnhart2529 Жыл бұрын
Can anyone clear something up for me? If the equation calls for the cashflows to be divided by (1+r)^n, wouldn't that mean that the discount rate number would be absolutely massive in later time periods? I think it looks like a simple typo.
@arvindgr94 Жыл бұрын
at 3:39, i dont see t in the formula, is it that both t & n are the same?
@jabhutt10135 жыл бұрын
Great lessons, learning a lot, but probably somwhere at 10min point completely lost everything with all the naming...:)) Will have to re-watch it.
@vatsaltripathi26282 жыл бұрын
We will value entire business prof . That seems more logical .
@caribbeanqueen13893 жыл бұрын
Omg. It FINALLY CLICKED! Why the fuck my lecturers couldn't explain it so simply!!!
@Cloninginvesting2 ай бұрын
Thank You🙏
@vikaskumarkancharla31515 жыл бұрын
Watching back in 2019
@gamingguru39793 жыл бұрын
I have this question, if anyone could reply the solution you are great! When we discount the cash flow to the firm at the cost of equity we should get an upward biased estimate right? Like then we are only subtracting what the equity investors demand not including debt payments... from a huge amount like cash flow to business. Similarly When we discount the cash flow to the equity at the cost of capital we should get an downward biased estimate right? Like then we are subtracting what the equity investors demand and debt payments... from a small amount like cash flow to equity which is already have debt subtracted off? Is it something to do with the equation? Like the denominator side is greater or smaller because we sqaure it? [E(CFn)/(1+r)^n]
@sangaylala19243 жыл бұрын
Leaving this comment so I get notified when someone answers this question
@RIDON_TRADER Жыл бұрын
Thank you sir
@bobbymerriman Жыл бұрын
I'm confused why the discount rate is adjusting for risk if the cash flows are measured based on expected values? Shouldn't the expected value component of the cash flows already account for risk since the expected value includes the probability of both good and bad times? That is, the expected value is just the weighted average of cash flows across different future scenarios with the weights being equal to the probability of that scenario occurring. The only explanation I can think of is that the expected value is capturing more "systematic" or "macroeconomic" conditions, while the discount rate would be capturing more "firm-specific" risk, but I am not quite clear and was hoping you could explain the difference between the discount rate measuring risk and the expected value capturing different "risky" scenarios.
@eliotsandoval Жыл бұрын
I think that’s why there’s two approaches: - You can use expected cash flows and adjust your discount rate. Because expected is based on hope and not certainty, expected cash flows still have some risk involved. - Or you can adjust your cash flows aiming to certainty and then use a risk-free rate as your discount rate.
@pajeetsingh3 жыл бұрын
Has he done any video on SPACS?
@leonardorakrot34432 жыл бұрын
What if the company has no debt? You are going the equity way inevitably?
@Alpha_Q_up.3 жыл бұрын
Great!
@meson24393 жыл бұрын
I'm a total noob on finance, but the formula for terminal value looks weird. Mathematically speaking, shouldn't the value of the assets equal to the sums of the geometric series? I don't understand how the terminal value is derived.
@cw92492 жыл бұрын
what is this from? what course?
@futarmaljain32284 жыл бұрын
What are other tools for intrinsic valuation apart from DCF
@jeffallenwang4 жыл бұрын
DDM is other popular one. Also there's an IV calculator that Ben Graham used
@ArturK1M Жыл бұрын
When I'm getting confused here, should I carry on to another session or beat this session to death until I understand completely? I think I will carry on.
@shantanuselokar63572 жыл бұрын
This guy has a really great Bond villain vibe.
@amanlalshrestha42044 жыл бұрын
I think I am in love with you!
@tyler-iy4jk6 жыл бұрын
how do you put a number to risk?
@freedomprayer0075 жыл бұрын
Statistical tools used. Eg standard deviation
@vietnammg Жыл бұрын
ok... but what color is your bugatti
@tolat11 ай бұрын
good stuff
@juanignaciozapata1377 Жыл бұрын
Where i can find that data?
@kriegerdeslichts74815 жыл бұрын
i always thought DCF only works on stable companies...like Coca Cola etc...what about a fast grower which currently doesnt earn or generate much cashflow...like how could have you valued Amazon 20 years ago...for example..
@Eduardozco4 жыл бұрын
As he said on the previous video, you can never get it right. A valuation is an estimate, and it will always be wrong. What you can and should try to do is getting it close enough most of the time
@Bronceado718410 ай бұрын
Thanks
@suthan20033 ай бұрын
Pretty Confusing :( Listened 3 times but still confused....mates !!! Any suggestion? Watch 3 more time until I get it??
@rahulsharmaoo7 Жыл бұрын
❤
@suburbancommandos78882 жыл бұрын
The intrinsic valuation of his sleeves extends to his wrists.