Session 6B: Monte Carlo Simulations in Finance & Investing

[@chetangk5799]

Crisp and clear delivery! This series is really awesome. No words to explain my joy..

[@MrBumbo90]

I am so proud to have finished this course. I love your videos prof. I have so far done the accounting course and this one. Moving on to finance after reviewing all my notes.

[@titodlt25]

You're a Genius. Bought your book today after watching this video!

[@Prasadavajjhala]

Prof Damodaran, Thank you so much for this series, it has been extremely beneficial. The clarity of explanations and in bite chunks was perfect, as was your reference list. I am going to do your valuation series next. Receiving lectures from someone with your reputation and caliber is an incredible opportunity. As an idea and subject to demand, would you consider a workshop or series for future Phd (finance) students or people outside academia who want to learn how to publish finance papers in peer reviewed journals. Thank you so much your content on youtube. 🙏

[@nicolaguida5612]

Thank you Prof. Damodaran for sharing your wisdom! Referring to Apple, I would just add that, based on iPhone segment considerations, the analysis would have predicted the valuation range quite correctly. In 2016 it was probably not already possible (at least for everyone) to predict that Services would become such a significant part of revenues, and, most importantly, that it would sport a gross margin of 70%! which of course is raising the company gross margin by some points.

[@royb9113]

Thanks! Your courses are so valuable. I really appreciate what you do. You have changed my outlook on stocks and the proper education required to become truly successful.

[@DaniloCosta01]

What a great course! Thank you so much, professor! God bless you!

[@dolevmazker736]

Thank you so much for this, just completed stat 02 and going to start econometrics in the next course of months. This was a great starter to understand the connection between statistics and economics in a group.

[@desmondwong5851]

Thanks much this - super clear explanation of applying Monte Carlo simulations, helped me at work today!

[@felixjoncar9614]

Enlightening as always! Thank you professor damodaran

[@arkabratapaul]

Thanks for sharing the knowledge with so much clearity.

[@brainskull98]

Kinda amazing how Apple turned out closer to the best case scenario

[@marsaetos9610]

Great coverage. Classic model.

[@snehilmishra393]

Extremely helpful. Thank you professor.

[@Akerfeldt77]

Another Damodaran gem down, a few more to go before starting my MBA in January. What a goldmine to have discovered. *Sidenote* The alien landing took place around 18:58.

[@Guilherme-fd2bw]

You are amazing professor

[@mitulkotadia5969]

Awesome 🙌 Thank you professor ! It is helpful.

[@hamidjamshidi7846]

Thanks a lot for your informing and amazing videos Professor

[@fkolev7700]

I wanted ask, at end the professor said, you can program correlation between the variables in the Monte Carlo Simulation (he gave an example of revenue growth and margins). Does that mean to construct a correlation matrix and use those weights?

[@dleeuss1997]

Professor, how did you get negative values for the lognormal distribution?

[@alstendsouza]

Thank You Professor

[@DevanshAsawa]

cheers to the man !

[@yknga]

As good as always

[@jshellenberger7876]

#POW

[@StockSpotlightPodcast]

Now at $172 over 90th percentile haha

[@taylorblack9038]

The prices shown in the video were pre split that happened in 2021 (4 - 1 split). That means adjusted for split the price would be $680 today ($170 x 4 shares). Far beyond even his 100 percentile estimation. As someone mentioned above, margins have been much higher on the services side and low interest rates have pushed valuation multiples up but return has been incredible since 2016 for Apple.