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This 28-session equity valuation class will be recorded starting January 23, 2017, and the lectures are accessible in multiple ways. 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. For the syllabus and other details, visit the home page .
Lecture Notes
Webcasts
This page will include the webcasts from the current class. The webcasts
can be accessed in one of four ways:
Options for following class
You can follow this class in other forums. One is iTunes U, where you can watch the webcasts and follow the class on your tablet or even smartphone. The other is YouTube.
Finally, you can read the emails that I send to the class by this link.
Session Webcasts | Topics covered | Lecture notes |
Preview of the class |
||
Introduction to Class | ||
Post-class test and solution. | ||
Valuation of the week #1 |
A Jedi Valuation of Star Wars |
Google Shared Spreadsheet |
Valuation bias: A test and my solutions | ||
Why bother (with valuation)? |
||
Post-class test and solution. | ||
Valuation Tools Webcast #1 Getting Data for Valuation |
Data collection: The first step In this webcast, I look at the basics of getting the raw material needed for valuing a business - financial statements, sector information and macro economic data. |
|
Cash flow consistency: A test (Congoleum) | ||
DCF Big picture DCF inputs: The Discount Rate - Setting the table - Risk and the marginal investor - The riskfree rate |
||
Post-class test and solution. | ||
Valuation of the week #2 |
Valuing a Sports Franchise |
Google Shared Spreadsheet |
Risk Free Rates: A test | ||
Risk free Rates |
||
Post-class test and solution. | ||
Weekly Challenge #1 |
Reconciling firm and equity valuation |
|
Much of the raw material (data) that we use for valuation comes from annual reports and financial filings. (10, 10Q). In this presentation, I lay out a template for extracting information from these filings, separating the stuff that matters from the stuff that does not, using P&G in September 2012 as an illustration. | ||
Risk Premiums: A test | ||
Implied Equity Risk Premiums - More on estimation - Interaction with other "risk" premiums First steps on betas |
||
Post class test and solution | ||
Valuation of the week #3 |
Apple, The Greatest Cash Machine in History?
|
Google Shared Spreadsheet |
Betas and cost of capital: A test (just page 2) | Lecture note packet 1: 80-107 | |
Measuring Relative Risk (Betas & Alternatives) The cost of debt Subsidized Debt |
||
Post class test and solution | ||
Weekly Challenge # 2a | Implied Premium versus Riskfree Rate |
Implied premium challenge, data and solution |
Valuation Tools Webcast #3 Estimating a risk free rate |
Estimating a risk free rate |
|
Valuation Tools Webcast #4 Implied Equity Risk Premiums |
The logic and the measurement questions behind equity risk premiums are examined in this webcast. | Presentation Spreadsheet S&P 500 on buybacks S&P 500 earnings |
Cash flows: A test | Lecture Notes 1: 108-129 | |
Earnings and cash flows |
||
Post class test and solution | ||
Valuation of the week #3 |
A Valuation of PZ Cussons Nigeria |
Google Shared Spreadsheet |
Growth rates I: A test | Packet 1: Page 130-158 | |
Accounting Fraud & Negative Earnings |
||
Post class test and solution | ||