This 26-session equity valuation class will be taped starting January 26,
2004 and the lectures will be available as Real Player files (You can download
Real Player for free by going to http://www.real.com).
You can get the supporting lecture notes by clicking on the pdf files
below - the pages covered by each lecture are provided next to each
lecture. The
quality of the video and audio leaves much to be desired but it will
get better over time. For the syllabus and other details, visit the home
page for the class.
Introduction to Valuation
Part
I: Discounted Cashflow Valuation (261 pages). If you prefer two
slides per page, click here. (Updated for Spring 2004 class)
Part
II: Relative Valuation and Private Company Valuation (241 pages) (If
you prefer two slides per page, click
here) (Updated for Spring 2004 class)
Part
III: Real Options, Acqusition Valuation and Value Enhancement (223 pages) If you prefer
two
slides per page, click here.(Updated for Spring 2004 class)
Part
IV: Closing Presentation
| Session (Click here) | Topics covered | Lecture notes |
| 1 (1/26/04) | Introduction to Class Approaches to Valuation |
Syllabus for class |
| 2 (1/28/04) | Which valuation approach is right
for you? |
Introduction to Valuation (8-21) Packet 1 (1-10) |
| Weekly Challenge # 1 | Reconciling firm and equity valuation | Weekly Challenge Solution |
| 3 (2/2/04) | Ingredients in DCF valuation |
Packet 1 (11-28) |
| 4 (2/4/04) | Country Risk Premiums |
Packet 1 (29-48) |
| Weekly Challenge # 2 | Estimating country risk premiums | Weekly Challenge Solution |
| 5 (2/9/04) | Bottom-up Betas Cost of Debt and Synthetic Ratings Dealing with Hybrids |
Packet 1 (49-68) |
| 6 (2/11/04) | Earnings |
Packet 1 (69-87) |
| Weekly Challenge # 3 | Adjusting Operating Earnings |
Weekly Challenge Solution |
| 7 (2/18/04) | Capital Expenditures |
Packet 1 (88-109) |
| 8 (2/23/04) | Take the quiz, check out the solution and compare your score to the distribution. Analyst Estimates of Growth |
Packet 1 (110-126) |
| 9 (2/25/04) | Net Income Growth vs EPS Growth |
Packet 1 (127-153) |
| Weekly Challenge # 4 | Estimating fundamental growth | Weekly Challenge Solution |
| 10 (3/1/04) | Loose Ends in Valuation |
Packet 1 (154-178) |
| 11 (3/3/04) | Valuation Examples - Con Ed: Stable Growth DDM and Implied Growth - ABN Amro: Decomposing value into growth and assets in place - S&P 500: Is the market under or over valued? - Nestle: Emerging Market Exposure and the Effects of New Information |
Packet 1 (179-207) |
| Weekly Challenge # 5 | Dealing with management options | Weekly Challenge Solution |
| 12 (3/8/04) | Valuing a high growth, emerging market company Valuing distressed companies Valuing companies with R & D expenses... |
Packet 1 (208-237) |
| 13 (3/10/04) | The Dark Side of Valuation: Valuing young companies |
Packet 1 (238-258) Packet 2 (1-5) |
| Weekly Challenge # 6 | Circular Reasoning in DCF valuation | Weekly Challenge Daimler valuation Solution |
| 14 (3/22/04) | The Four Steps in deconstructing multiples PE Ratio - Definition - Description - Determinants - Applications |
Packet 2 (6-37) |
Mystery Project: Breaking up is hard to do |
Mystery Project | |
| 15 (3/24/04) | PE Ratio for sectors PE Ratio for the market PE versus Expected Growth PEG Ratios |
Packet 2 (38-81) |
| Weekly Challenge # 7 | Analyzing the PEGY ratio | Weekly Challenge Solution |
| 16 (3/29/04) | Relative PE Ratios EV/FCFF Multiple EV/EBITDA Prict to Book Ratios |
Packet 2 (82-124) |
| 17 (3/31/04) | Take the quiz, check the solution and see how you stand on the distribution. Price to Book Scatter Plots |
Packet 2 (125- 153) |
| 18 (4/5/04) | Value to Sales Ratios The Value of a Brand Name Choosing the Right Multiple Sector versus Market Relative Valuations Private Company Valuation: Discount Rates |
Packet 2 (154-192) |
| 19 (4/7/04) | Private Company Valuation: Cashflows Illiquidity Discounts The Value of Control Voting versus Non-voting shares |
Packet 2 (193-225) |
| Weekly Challenge # 8 | Relative Valuation versus DCF valuation | Weekly Challenge Solution |
| 20 (4/12/04) | Minority Discounts Real Options - The Allure - Three fundamental questions - The Option to Delay |
Packet 2 (227-229) Packet 3 (1-30) |
| 21 (4/14/04) | Valuing a company with patents Valuing undeveloped natural resources The Option to Expand and caveats The Option to Delay |
Packet 3 (31-60) |
| Weekly Challenge # 9 | Valuing Private companies | Weekly Challenge Solution |
| 22 (4/19/04) | Take the quiz, check the solution and see how you stand on the distribution. Value of Financial Flexibility |
Packet 3 (61-90) |
| 23 (4/21/04) | Valuing Equity in troubled firms continued - Conglomerate mergers - Estimating option pricing parameters Acquisition Valuation - The five steps in acquisition analysis - The Value of Control - The Value of Synergy |
Packet 3 (91-129) |
| 24 (4/26/04) | Valuing Financial Synergy |
Packet 3 (130-160) |
| 25 (4/28/04) | Value Enhancement Continued Turnaround Strategies Short Cuts to Value Enhancement: EVA |
Packet 3 (161-194) |
| 26 (5/3/04) | EVA: What can go wrong? |
Packet 3 (195-21) Closing Presentation |
| Take the final exam and check out the solution. | ||