Valuation Tools Webcast: From First Principles to Valuation Models

As data access has improved, and our tools get more powerful, valuation practice has devolved into financial modeling, with Excel ninjas viewed as its masters. In this session, presented for analysts at the Motley Fool on March 10, 2022, I start with an overview of value versus price, follow up with the drivers and determinants of value and emphasize how stories hold valuations together. I then use my most general valuation spreadsheet, accessible on my website, to illustrate how past data, industry averages and your company's story get converted to valuation inputs, and how these inputs become value. (I use my Tesla November 2021 valuation to illustrate, but I also have the link for the general spreadsheet, if you want to try your hand at valuation).
(If you have trouble downloading files, switch away from Google Chrome. It seems to be having issues with the NYU server.)
Slides: www.stern.nyu.edu/~adamodar/p...
Tesla Valuation (November 2021): www.stern.nyu.edu/~adamodar/p...
General spreadsheet (updated through 2022): www.stern.nyu.edu/~adamodar/p...
(If you want to know why there is a ginzu in the name, watch the session..)

[@Sokrabiades]

This is the first time I have found valuations either understandable or interesting. I have been looking for this kind of thing for a long time. Thanks, professor.

[@federicozandona]

Thanks professor!. I live in South America. It is a real privilege to have such a quality class free in youtube.

[@mm0dk0ur]

Another Masterpiece from you professor. All the greeting from Egypt, the land of the Nile and Pyramids

[@sujoydalal9147]

Thank you Sir, this is bonus class for your TH-cam students:)

[@quant-trader-010]

This is gold!

[@user-xy7xp8uk7l]

Amazing lecture, thank you!

[@michaelsu5842]

I have been following the professor for a while and one thing that caught my attention is his change in attitude. I am loving it! If you look at his early lecture, he would not show his disagreement with anyone. Finally, the time has come, now he is showing his difference of opinion in a respectful way.

[@tommysaputrani]

World class thank you.

[@blackbite5433]

I am little bit confused over Depreciation & Amortization. Why we are deducting d&a from ebit to come at FCFF when it is already minus in ebit. One more time we deduct dep from capex to arrive at reinvestment rate. I guess reinvestment should be cash item we are expensing over ebit.

[@MrBlasterWave]

Thanks a lot Professor, very usefull video! will there be an update one the airbnb case?

Professor, Is it possible to do a valuation of the lender of last resort - The Fed?

[@ramjiYahoo]

WONDERFUL PRESENTATION, teaching- but why there was an introduction- Introduction to Aswath sir, Thomas alwa edison, Peter Drucker, Newton, Bill Gates, Steve Jobs, Paul Samuelson, Adam Smith, Keynes,Obama, Sheikh Zayed Abu Dhabi , Nelson Mandela are not required at all.

[@tokhmi2006]

Why is your ROC calc in the DCF workbook based on beginning year balance sheet values and not average?

[@kittitommiska6559]

ยิ่งดู ยิ่งมันส์ หึๆๆ

[@robertbenor7130]

im having a difficult time understanding his calculation for book value of debt, can anyone advise specifics?

[@hmendozan0]

I could not download the Valuation Spreadsheet. Does anyone know how to get it?

[@alexanderinsubordinate1861]

A Jeffery Doobin don't do it 🤣 8:40

[@mikekozono3401]

Starts at 6:20

[@mohammedjunaid4870]

Starts @ 6 :18.

[@mattwood1233]

39:30 honestly I would argue the DDM is wrong. Because like you pointed out, it's not valuing the cash flows or enterprise value, it's not even valuing the cash returned to shareholders since buybacks aren't included

[@mattwood1233]

I couldn't watch it all, but great video as always professor

[@1percentRule]

Did he talk shit about my mentor Warner and Charlie?? 20 century best investor.

[@dangtrungkien80]

Dear Professor Aswath Damodaran,
Can you please explain me why the formula you use to calculate Effective Tax rate is as follows:
Effective Tax Rate = Marginal Tax Rate * (1, (Taxable Income + Interst)/Interest)
I understand that
- If Taxable Income > 0 then Effective Tax Rate = Marginal Tax Rate
- If Taxable Income

[@dodgingdurangos924]

48:08 Aswath: "I need six line items out of the 500... Less is more."
Me: I open up his simple spreadsheet, and it wants me to fill out over 500 line items! 😬

[@nofavors]

You underestimating Indians purchasing power. They don't have 80% living in huts. 200 million are probably just living in tier 1 cities with very good income. That alone is massive. India will grow by 8+ % yoy so future growth could be really sound.