Valuation: Syllabus

General Information

Office: Room 9-96
Phone: 998-0340
E-mail: adamodar@stern.nyu.edu
Home Page: Click here to go to my home page
Office Hours
- Monday 9.45-10.20,12-1
- Wednesday 9.45-10.20, 12-1
- The fair game principle still applies.
All classes will be webcast. The webcasts will usually be up 2 hours after the class and can be accessed by clicking here.

Course Objectives

Valuation Course Objective

Course Outline

Topic	Session
Introduction	1 - 2
DCF Valuation: Estimating Parameters	3 - 8
DCF Valuation: Valuation Examples	9-11
Relative Valuation	12-17
Valuing Private Firms	18-19
Option Pricing Applications	20-22
Acquisitions	23-24
Value Enhancement Strategies	24-25
Review	26

Required Material

Lecture Note Packets: These are available in three parts in the book store. They can also be downloaded on the web by going to
https://www.stern.nyu.edu/~adamodar/New_Home_Page/eqlect.htm
Supplementary texts: You have two choices and neither is required. I do agree with the author of these books most of the time and I think (hope) that they represent a good investment
- The Dark Side of Valuation (Preintice Hall)
- Investment Valuation (Second Edition)

Other Readings:

Chapter Coverage

Topic	Dark Side	Investment Valuation (2 Ed)	Damodaran on Valuation (2 Ed)
Introduction	1 -2	1 - 2	1
DCF Valuation: Estimating Parameters	3 -5	7-12	2-4, 10. 11, 16
DCF Valuation: Valuation Examples	6-7	13-16, 21-23	5-6, 17
Relative Valuation	8-10	17-20	7-9
Valuing Private Firms		24	14
Option Pricing Applications	11	5, 28-30	12
Acquisitions		25	13, 15
Value Enhancement Strategies	12	31-32	13
Review	13	35	18

Grade Distribution

Valuation grade distribution

Grading Basis

Group Work: Students should work in groups of five. Each group will be required to work on a group project.
- Valuation Project Due in two parts 30%
  - Part 1: DCF Valuation due by March 13
  - Part 2: Entire project due by May 4 at 5 pm.
  - Mystery Project: Will be specified later. - Worth 10%
Individual Work:
- Quizzes: There will be three quizzes worth 10% apiece.
  - Quiz 1: Discounted Cash Flow Valuation: Session 9 (February 25)
  - Quiz 2: Relative Valuation: Session 16 (March 30)
  - Quiz 3: Private Company Valuation: Session 22 (April 20)
- Final Exam: This will also be an open-book and open-notes cumulative exam on May 11, from 1.30-3.30, worth 30%. .

Rules of Engagement

Rules of group work:
- Pick your own groups. (If you have trouble getting picked, I will help)
- All group work will be self policed, except in extreme circumstances.
- There will be one grade per group, no matter how the work load is distributed among the group members
Rules on individual work
- All exams and quizzes are strictly individual work.
- There will be no make-up quizzes. If you miss a quiz due to ill health, the grade will be redistributed over the remaining part of the course.
I will be the grader, and I do make mistakes. If I screw up, bring it to my attention and I will fix it.
Rules on Participation
- All participation is welcome.