Corporate Finance: Newsletter – December 8, 2007

Where we are in class…

Where you should be in the project…

Data Notes…

The valuation comes at the tail end of the project and it is not the focus of the project. If you want to read up more on valuation or watch some webcasts on the topic, go to classes and click on the valuation class.

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/classlist.htm

There are several valuation spreadsheets on my site that you can borrow, use or modify to your heart’s content… My recommendation is that you stick with one of the ginzu spreadsheets. They are versatile and should work for most firms.

Miscellaneous FAQs

Do I have to use last year’s numbers as a base?

You should start with last year’s numbers but preserve the flexibility to change those numbers, if the facts merit… You have a great deal of discretion in valuation.

My value is very different from my price. What should I do?

First, check your numbers. If your numbers look okay, check your assumptions. If your assumptions seem reasonable, accept the estimate of value. After all, markets sometimes make mistakes.