He literally just introduced the course. What exactly can't you believe? Valuation is simple, every good valuation has a story behind it, and biases and uncertainty make valuations that go bad. This is just common sense. Why is everyone losing their shit?
@@knockoutkiss4687 Because there is a whole lot of horse shit on youtube. Don't hate on people's excitement because you feel less naive in the short run, Kiss.
@@knockoutkiss4687 you have no idea how important his channel is to students like me. I have gone through hundreds of brochures for courses on valuation that claim to be the best in the market but none were as engaging and brilliant as his videos are and most importantly its absolutely free. So, if you cannot acknowledge the teacher's brilliance atleast don't berate the person (whose comment you replied) for getting shocked because he/she most certainly is not alone.
1. Valuation is simple, we choose to make it complex. 2. Every valuation has a narrative behind it. A good valuation is more about the story than about the numbers. 3. When valuations go bad, it's not because of the numbers, it's because of biases, uncertainty and complexity.
I just stumbled upon these videos and have watched the first 2 sessions. Prof. Damodaran's explanations are easy to understand; his analogues funny and relevant. I plan to finish the entire series. But I want to express my gratitude first to Prof. Damodaran for openly sharing the materials online. Thank you!
@@manubhatt3 No I don't think so. He just starts from the scratch and he is very clear about what he wants to teach. If you're someone who wants to learn it this is the best for you.
@@manubhatt3 If you haven't figured it out by yourself yet , then go to the channel's Playlist.. You will get many old and new courses on valuation and corporate finance.. For better understanding of the subJect I will recommend you to do the courses on "Accounting 101" and "Foundation of Finance" first.. Then you can do the old short course on valuation. It's the first course uploaded on the playlist.. You can also refer to a book "Damodaran on valuation" or "The little book on valuation" for better understanding... This books are also available in PDF version in many public websites... 🙏
He literally just introduced the course. Where exactly is the gold in this video? Valuation is simple, every good valuation has a story behind it, and biases and uncertainty make valuations that go bad. This is just common sense. Why is everyone losing their shit?
I remember at 2008 learn his book.I hated it so much about valuation and corporate finance. Now.I am a business owner and there we go......i should open that dark blue book again. in conclusion.i was wrong to hate it but this proffesor keep consistent for what he is doing ...very big respect
08:43 why not build a big model 09:10 how to build a "SUITABLE" model 09:30 intrinsic valuation means: cash flow, growth, risk 12:00 3 kinds of approaches: 1. intrinsic valuation (cash flow valuation) 12:59 2. relative valuation 14:28 3. option pricing & the context of valuation
By far, the best take on valuation analysis I have ever heard, no numbers, no fancy jargon, simply explaining in layman's english, the underlying fundamentals of valuation.
Aswath sir - you can sell this course and can make millions out of it but you are setting the true definition of a "TEACHER". Thank you for sharing your knowledge.
In 3 minutes of watching him, I am in awe of him....heard a lot about him earlier but didnt know about this YT channel..It is Gold........i just wish I came across this content 5 years ago
I have watched about 20 hours of these videos and Aswath is one of the best teachers out there. He has a good personality compared to many professors at university that I have attended. He teaches in a very clear manner and does an outstanding job of relaying important information and clear concepts. Id love to go to his lectures in person.
@@mutiararamadhani5815 Andrew Lo although there are not as many lectures by him his Finance Theory 1 class really helped me and I still go back to the series occasionally for foundations.
Huge fan. Remembering me reading "Investment Philosophies" in 2004 and thinking: should be awesome to have a class with this man. Here I am! Crystal clear explanations.
I took the CVA exam a week ago, and was reading these past few days to keep touching up on areas I would like to improve. Then I decided to look for a video online, and I'm glad I did. I am going to watch all the sessions. You are an excellent teacher/speaker and have my undivided attention.
Hi Rick, now you can meet Prof. Ashwath and learn from the Masterguru himself !! He will discuss about Business Valuation in a 2-Days Intensive Training. Share your e-mail id and I will mail you the details.
Professor Damodaran, Thank you very much for sharing your knowledge with the world. Your textbook is great and these video lectures help clarify and solidify the concepts. I cannot wait to watch your 2023 classes.
How about valuation of aswath damodaran talks.. He is a king of valuation ..teachers ..has got guts to " a spade a spade ."...start with a blank slate...bias ...mission...justify ..misconception ..uncertainty ..fufuture ..bigger models....black box ..GIGO ..( LESS IS MORE ) intrinsic val..d c f ..val ..option pricing ...only if ..?? ..APPROACHES ...ASSUMPTIONS ..
I thought I've known something about valuation as having passing CFA level 2, but get hooked by his first few bullet points already. It’s been elevated to philosophical level!
I missed my Valuation class at University and my report is due this week ...Feeling like a Lemming, the cliff option seems affable. I found this Professor's videos and I take the option of climbing the cliff in 2 days :). Thank you Prof. Domodaran
I have challenged myself to put away 50% of my monthly income into stock options which is quite easy since I live frugal without debt. I work as an account executive, and make over $20000. $10000 goes into dividends, and the other $10000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed fund manager who allocates funds to a plethora of assets. Just got my first property, still I have to stay disciplined, and remember that I’m in it for the long term. Good luck to everyone and thanks for the great video.
With the help of a pro financial advisor, Herman W Jonas, I’ve gotten into stocks and fx, splitting my funds in different assets that have brought me huge roi. I just reinvest and grow my portfolio. Here,
When you're a beginner to stocks, it can feel intimidating to research and choose trades and other investments on your own, I felt that way too. But with Sir Herman’s help, I’m doing that effortlessly, with outstanding results.
@Maisymaisy I have made over $25,000 in profits, more so because I was reinvesting every two weeks. His strategies cuts across major financial markets which cuts across major markets which I found to generate more profit.
You're probably one of the best financial minds because of the simplicity you make things and the honesty you use. It's so easy to understand you logic, rationale and truth.
I'm studying finance at the moment.. I love the comment about how we over complicate valuation. Why can't all University Profs think this way. Thank you for this video.
I'm not at all from finance background, after covid in during the stock market boom I first time tried to learn about the stock market. I searched for valuation and stumbled upon your video sir. Thank you for explaining in simple and practical language.
Aswath Damodaran on teaching valuation is what David J Malan is to computer science education. Two passionate teachers on a mission to break down complex topics for everyone into easy digestible chunks. True legends in their fields of learning 🙌🏻 #Respect.
Such simplification of words made me understand the Valuation easily, I am so glad I found this. Indeed a great teacher you are. Thanks a lot for uploading these.
I'm glad I've found your videos Mr. Damodaran. I wish we met years ago and I could built my fundamentals solid. Now, I'm learning everything from the beginning. Thank you so much. Greetings from Turkey.
I got to know about you a month back. I have used your data sets about ERP, Risk free rates and TGR. Today suddenly this video popped out and now I am a fan.
Dear Professor, Thanks very much for your videos. Now I can be your so-called student. Your sharing helps millions of students around the world, especially those with a developing financial market in their country but lack of these lessons like Vietnam. Thank you very much again and wish Professor health and happiness. Tien Huynh
Hi Benjamin, now you can meet Prof. Ashwath and learn from the Masterguru himself !! He will discuss about Business Valuation in a 2-Days Intensive Training. Share your e-mail id and I will mail you the details.
This is the first video of yours which I have just now completed. I am expecting some quality learning time now. I never thought of learning with this level of professional teachers. Thanks for making quality learning available for free to watch. My teacher mentioned your videos while answering a student. I decided to give it a go. I am glad I did.
You, Mr. Damodaran, will be my way to success in investing. I'd done all the basics through a course on YT, but I needed a more advanced course to get my head around valuation and corporate finance. I feel so lucky for real. Thank you, professor, can't wait to watch all of your videos.
Calm Voice, obviously well educated with experience to back things up. Wish i stumble upon this class earlier. I would love the chance to meet with you. Thank you , Fritzlor
Hi Fritz, now you can meet Prof. Ashwath and learn from the Masterguru himself !! He will discuss about Business Valuation in a 2-Days Intensive Training. Share your e-mail id and I will mail you the details.
Just watching first video- must say its a very simple and wonderful way of explaining . Its simplicity kept me listening and i want to see all videos till the last. As rightly said being simple is the toughest thing in life
I am not even good at English but this video really easy to understand. I like the explanation of herd mentality but don't really know about lemmings. Up untill now I don't know what kind of valuation that I used,. But after watching this I know now that I used relative valuation and finally realised it's weakness. Thanks for sharing
Great video! Thanks for taking the time to do this! I look forward to watching them all. My personal choice for picking stocks is the following. Debt is well covered by cash. So in effect zero debt. Calculate enterprise value and divide against last 12 months of earnings. If this ratio is below 10 I become interested. Check this against other companies in same industry. Ive only managed to find a handful of companies this criteria meets.
I'm here because NVDA feels almost too good to be true and I don't want to be a Yogi Bear lemming. I keep hearing they have great fundamentals, but I want to be able to make an unbiased valuation myself. best of luck to you in the courses!
Feel like I a got a FREE college education! Appreciate you sharing the lecture Prof. AD! Many fundamentals regarding valuation can be applied to other aspects of life.
Aswath, I love that you bring up "herd mentality" with the lemmings analogy... BUT that isn't really how lemmings work! They don't die from falling off a cliff. They all jump off because they think the ocean below is just another lake that they can cross in the course of their migration. Lemmings that approach the ocean from a beach (as opposed to a cliff) ALSO enter the water en masse -- so you see it's not a "jumping off a cliff" thing. Regardless of their entry point, these lemmings swim away from land, thinking that, as in a lake, they will eventually reach the other side. Of course, they never do. They simply exhaust themselves swimming and drown. However, your point about herd mentality still holds! Thank you for this great series!
Sam's concept is key in beating all odds to excel in this form of online commodity. His management team is quite impressive so far!I'll recommend Expert mr sam deymon . he's the best ive seen. Sam Deymon trade makes me good profits 📈 weekly...
I wish one day all the teachers is the world can able to teach like how is sir Damodaran is doing. When a person teach something that he is interested in not only he teach it simple but also makes the learning experience so much fun and engaging.❤ Thankyou so much for your hard work sir. I looking foreword to my learning journey of valuation in your guidance.
Valuation gives you a foundation to rationally analyze a company before deciding to buy/sell Problems in valuation: 1. Bias 2, valuation is objective 3. less is more Three methods 1. Intrisic: based on fundamental 2. Relative: compare based on similar companies 3. Contingent claim: Companies which will only profit if certain events happen assumption of valuation: MARKET MAKES MISTAKES
I am not from This background , but The way he explain everything is fantastic . I understand each words of his without any problem . Looking fwd to read his books 👍
Thank you so much, your videos are probably the most helpful I've found on investing and valuation - I really appreciate the time and effort you've put in to making these videos and I'm going to watch them all 😁👍
==>Type of lemmings: 1. Proud - Crowd investor, momentum trader. 2. Yogi bear - Wants to take advantage of upward momentum and sell the stocks before its downward momentum. 3. Lifejacket - Rational ==>Problems in valuation 1. Biasness 2. Uncertainty 3. Complex valuation models ==>Approach for Valuation: 1. Intrinsic valuation - Emphasis on fundamental analysis i.e. cash flow, growth, risk etc. Most famous method is "discounted cash flow". (Cash flows, discount rate, life of asset) 2. Relative valuation - Look at the value of similar assets. Scale measure of price i.e. comparing relative ratios of companies. 3. Option pricing model in context of valuing assets with contingent cash flow. Example, a tech company with patent with can have value in future. ==>The common assumption in all three approaches is that the market makes mistakes. Industry value by market is correct but individual company valuation is wrong. Otherwise valuation could be based on market price i.e. "Market price of a share × No of shares"
Wow, I immediately wanted to learn more. This man gives off the vibe of educator more than schooler. Great video, I'm excited to follow the rest of your series. Yours, Float Circuit.
I’ve taught for 25 years. This man is excellent teacher.
I feel I'm so smart for understanding everything so easily, but that's because he's so great at teaching.
Sure He's good at teaching, but remember, as he said: "Valuation is simple, we choose to make it complex."
Great teachers learn how to make complicated items simple for the students.
@@Drwild75 Valuation of Uber, Airbnb , isn't it baised?
Exactly what I thought.
I never understood accounting before but after finding a professor who was so organized at teaching then I understood it. 😮
I'm in disbelieve! I can't believe this is on YT for free.
He literally just introduced the course. What exactly can't you believe? Valuation is simple, every good valuation has a story behind it, and biases and uncertainty make valuations that go bad. This is just common sense. Why is everyone losing their shit?
@@knockoutkiss4687 Because there is a whole lot of horse shit on youtube. Don't hate on people's excitement because you feel less naive in the short run, Kiss.
Dont let it out, else future would be not free. Just support such content
@@knockoutkiss4687 Because common sense is the least common of the senses, specially in investing
@@knockoutkiss4687 you have no idea how important his channel is to students like me. I have gone through hundreds of brochures for courses on valuation that claim to be the best in the market but none were as engaging and brilliant as his videos are and most importantly its absolutely free. So, if you cannot acknowledge the teacher's brilliance atleast don't berate the person (whose comment you replied) for getting shocked because he/she most certainly is not alone.
1. Valuation is simple, we choose to make it complex.
2. Every valuation has a narrative behind it. A good valuation is more about the story than about the numbers.
3. When valuations go bad, it's not because of the numbers, it's because of biases, uncertainty and complexity.
Thanks
ok sir.
you eat chappathy or rice in noon time?
@@mohdcv5883 pitzaalu thintadra
@@sivapeela9508 ok
Most TH-cam investing gurus don’t tell these valuable lessons. This is gold
I just stumbled upon these videos and have watched the first 2 sessions. Prof. Damodaran's explanations are easy to understand; his analogues funny and relevant. I plan to finish the entire series. But I want to express my gratitude first to Prof. Damodaran for openly sharing the materials online. Thank you!
Where is the other part. Can you please help me find it.
Can you please tell me if there are prerequisites to these lectures, for example, accounting etc.?
@@manubhatt3 No I don't think so. He just starts from the scratch and he is very clear about what he wants to teach. If you're someone who wants to learn it this is the best for you.
@@manubhatt3 If you haven't figured it out by yourself yet , then go to the channel's Playlist.. You will get many old and new courses on valuation and corporate finance.. For better understanding of the subJect I will recommend you to do the courses on "Accounting 101" and "Foundation of Finance" first.. Then you can do the old short course on valuation. It's the first course uploaded on the playlist.. You can also refer to a book "Damodaran on valuation" or "The little book on valuation" for better understanding... This books are also available in PDF version in many public websites... 🙏
@@bipuljha792 🙏
This is gold, pure gold
You're absolutelly right
@@carlossuarez6660 its gold jerry, gold!
Da!
True. I agree
He literally just introduced the course. Where exactly is the gold in this video? Valuation is simple, every good valuation has a story behind it, and biases and uncertainty make valuations that go bad. This is just common sense. Why is everyone losing their shit?
I remember at 2008 learn his book.I hated it so much about valuation and corporate finance. Now.I am a business owner and there we go......i should open that dark blue book again. in conclusion.i was wrong to hate it but this proffesor keep consistent for what he is doing ...very big respect
What kinda business r u in Steve ? Curious
@@LuvMasalaDosa he sells girls
@@gwagon3268 you saw?
How are you doing today mate?
I seriously can listen to this guy talk forever. He has a talent for speaking that's for sure.
08:43 why not build a big model
09:10 how to build a "SUITABLE" model
09:30 intrinsic valuation means: cash flow, growth, risk
12:00 3 kinds of approaches: 1. intrinsic valuation (cash flow valuation)
12:59 2. relative valuation
14:28 3. option pricing & the context of valuation
By far, the best take on valuation analysis I have ever heard, no numbers, no fancy jargon, simply explaining in layman's english, the underlying fundamentals of valuation.
Aswath sir - you can sell this course and can make millions out of it but you are setting the true definition of a "TEACHER". Thank you for sharing your knowledge.
This is Gold, and it's sitting here since 2014. Worse, I have no idea till now. Thanks a ton.
Sir, I'll make you my dhronacharya.
Thank you for making these lessons public. I am learning how to invest, and you are a valuable teacher!
In 3 minutes of watching him, I am in awe of him....heard a lot about him earlier but didnt know about this YT channel..It is Gold........i just wish I came across this content 5 years ago
I have watched about 20 hours of these videos and Aswath is one of the best teachers out there. He has a good personality compared to many professors at university that I have attended. He teaches in a very clear manner and does an outstanding job of relaying important information and clear concepts. Id love to go to his lectures in person.
Can I know who else doing that good?
@@mutiararamadhani5815 Andrew Lo although there are not as many lectures by him his Finance Theory 1 class really helped me and I still go back to the series occasionally for foundations.
@@gregorybattis9588 thanks!
Huge fan. Remembering me reading "Investment Philosophies" in 2004 and thinking: should be awesome to have a class with this man. Here I am! Crystal clear explanations.
I took the CVA exam a week ago, and was reading these past few days to keep touching up on areas I would like to improve. Then I decided to look for a video online, and I'm glad I did. I am going to watch all the sessions. You are an excellent teacher/speaker and have my undivided attention.
Hi Rick, now you can meet Prof. Ashwath and learn from the Masterguru himself !! He will discuss about Business Valuation in a 2-Days Intensive Training. Share your e-mail id and I will mail you the details.
Rick Saavedra q
Hello, what is CVA EXAM
@@foodie1974 Hello, he meant CFA exam
I wish I could go back to time of your comment
Professor Damodaran, Thank you very much for sharing your knowledge with the world. Your textbook is great and these video lectures help clarify and solidify the concepts. I cannot wait to watch your 2023 classes.
where can i get his textbook?
As an Engineer who wishes to trade stocks, this explanation is INSANE... I have watched a lot of videos of valuation but this is gold..
The lecturer of the lecturers!
Brilliant! Mr.Damodaran is the best professor out there. Thanks a ton for sharing the videos.
Mr. Damodaran explained in 16:14 minutes which my professor could not in an entire semester!
then pay attention in classes
@@MegaPitbull1999 Seems like someone is butthurt LMFAO.
Show this to your professor. He will turn this 16mins into a full semester for the next batch.
Be attentive in the classes, seems mind is wandering around
How about valuation of aswath damodaran talks.. He is a king of valuation ..teachers ..has got guts to " a spade a spade ."...start with a blank slate...bias ...mission...justify ..misconception ..uncertainty ..fufuture ..bigger models....black box ..GIGO ..( LESS IS MORE ) intrinsic val..d c f ..val ..option pricing ...only if ..?? ..APPROACHES ...ASSUMPTIONS ..
I thought I've known something about valuation as having passing CFA level 2, but get hooked by his first few bullet points already. It’s been elevated to philosophical level!
I missed my Valuation class at University and my report is due this week ...Feeling like a Lemming, the cliff option seems affable. I found this Professor's videos and I take the option of climbing the cliff in 2 days :). Thank you Prof. Domodaran
I have challenged myself to put away 50% of my monthly income into stock options which is quite easy since I live frugal without debt. I work as an account executive, and make over $20000. $10000 goes into dividends, and the other $10000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed fund manager who allocates funds to a plethora of assets. Just got my first property, still I have to stay disciplined, and remember that I’m in it for the long term. Good luck to everyone and thanks for the great video.
With the help of a pro financial advisor, Herman W Jonas, I’ve gotten into stocks and fx, splitting my funds in different assets that have brought me huge roi. I just reinvest and grow my portfolio. Here,
Hermanw jonas (a g mal
comm
I don’t make that much, but I sure do make enough. However, it will not be a bad idea to hear from a professional. I hope he replies my email.
When you're a beginner to stocks, it can feel intimidating to research and choose trades and other investments on your own, I felt that way too. But with Sir Herman’s help, I’m doing that effortlessly, with outstanding results.
@Maisymaisy I have made over $25,000 in profits, more so because I was reinvesting every two weeks. His strategies cuts across major financial markets which cuts across major markets which I found to generate more profit.
You're probably one of the best financial minds because of the simplicity you make things and the honesty you use. It's so easy to understand you logic, rationale and truth.
is it just me or everyone here thinks that this no bullshit guy is the real finance content we needed all along.
I'm studying finance at the moment.. I love the comment about how we over complicate valuation. Why can't all University Profs think this way. Thank you for this video.
Most profs do academics for the sake of academics, or teach for the sake of teach
I'm not at all from finance background, after covid in during the stock market boom I first time tried to learn about the stock market. I searched for valuation and stumbled upon your video sir. Thank you for explaining in simple and practical language.
Aswath Damodaran on teaching valuation is what David J Malan is to computer science education. Two passionate teachers on a mission to break down complex topics for everyone into easy digestible chunks. True legends in their fields of learning 🙌🏻 #Respect.
Exactly my thought!
If you can value your life and plan according to that then you are the greatest valuator mate!
The man who makes you feel less afraid about your career in Finance
Such simplification of words made me understand the Valuation easily, I am so glad I found this. Indeed a great teacher you are. Thanks a lot for uploading these.
Great set of videos. I'm sharing the link with my students here at Indiana University!!
Phenomenal idea.
I'm glad I've found your videos Mr. Damodaran. I wish we met years ago and I could built my fundamentals solid. Now, I'm learning everything from the beginning. Thank you so much. Greetings from Turkey.
Thank you very much 🙏
Incredible to live in a time where content like this is accessible to almost the entire world for free.
I got to know about you a month back. I have used your data sets about ERP, Risk free rates and TGR. Today suddenly this video popped out and now I am a fan.
Not only great information but his presentation skills are excellent. I could listen to him lecture all day.
"Markets are correct on an average but wrong individualy" What a quote!!
This channel is a gold mine
This is the most valuable video on internet regarding Business Valuation :)) I love you AD
Dear Professor,
Thanks very much for your videos. Now I can be your so-called student. Your sharing helps millions of students around the world, especially those with a developing financial market in their country but lack of these lessons like Vietnam.
Thank you very much again and wish Professor health and happiness.
Tien Huynh
You, sir, helped me to pass my master and Ph.D.. your research and books are outstanding!
Thank you very much!
Aswath is like Yoda. A totally different clothing style and a Big inspiration for me personally.
He is an angel who shares paid edu, at free of cost , a man with big heart can only do this ,
THIS valuation in market costs around 50-60k
Love the format Prof, short, sweet, direct to the point, awesome for online viewers
Hi Benjamin, now you can meet Prof. Ashwath and learn from the Masterguru himself !! He will discuss about Business Valuation in a 2-Days Intensive Training. Share your e-mail id and I will mail you the details.
Can’t believe took me so long to find this class, for free. Very appreciated!
This is the first video of yours which I have just now completed. I am expecting some quality learning time now. I never thought of learning with this level of professional teachers. Thanks for making quality learning available for free to watch.
My teacher mentioned your videos while answering a student. I decided to give it a go. I am glad I did.
You, Mr. Damodaran, will be my way to success in investing. I'd done all the basics through a course on YT, but I needed a more advanced course to get my head around valuation and corporate finance. I feel so lucky for real. Thank you, professor, can't wait to watch all of your videos.
His channel is heavily undervalued. You are getting million dollar education for free. 🙏
He is the definition of a TEACHER, he is the bestest
Calm Voice, obviously well educated with experience to back things up. Wish i stumble upon this class earlier. I would love the chance to meet with you.
Thank you ,
Fritzlor
Hi Fritz, now you can meet Prof. Ashwath and learn from the Masterguru himself !! He will discuss about Business Valuation in a 2-Days Intensive Training. Share your e-mail id and I will mail you the details.
would also like the same - thomasabvnew@gmail.com. thanks
Please check your inbox. Thanks.
Anjali Gupta hii i want to join too...fardeenakhtar2@gmail.com...thanks
HELLO, kindly check your inbox, I have written to you. In case its not in inbox, pls check spam folder as well.Thanks!!
Naah, man i watched the whole video and i thought my grandpa is telling a story. His voice, his teaching style. Sir you are already a legend.
much appreciated, for all content . Certainly you’re the second best instructor that I’ve come across Thankyousomuch Sir.
True Guru! Thank you professor for all your generous sharing!
This guy is amazing! Thank you dear professor! My first video and I feel happy watching and learning for you.
Gurudevaya Namaha. So precious and quality content for the remotest students like me. Thank you Master.🙏🙏🙏
Thank you professor. I read your book during my MBA. But to my surprise, you have shared it all for free on TH-cam!
Prayers and best wishes for you.
Just watching first video- must say its a very simple and wonderful way of explaining . Its simplicity kept me listening and i want to see all videos till the last. As rightly said being simple is the toughest thing in life
I am not even good at English but this video really easy to understand.
I like the explanation of herd mentality but don't really know about lemmings. Up untill now I don't know what kind of valuation that I used,. But after watching this I know now that I used relative valuation and finally realised it's weakness.
Thanks for sharing
Great video! Thanks for taking the time to do this! I look forward to watching them all. My personal choice for picking stocks is the following. Debt is well covered by cash. So in effect zero debt. Calculate enterprise value and divide against last 12 months of earnings. If this ratio is below 10 I become interested. Check this against other companies in same industry. Ive only managed to find a handful of companies this criteria meets.
I really appreciate your efforts and thank you for giving such a variety of ways to think about valuation.
Who are here in 2024? 😅
Me
I'm here because NVDA feels almost too good to be true and I don't want to be a Yogi Bear lemming.
I keep hearing they have great fundamentals, but I want to be able to make an unbiased valuation myself.
best of luck to you in the courses!
Me😊
Yeah
😅
Glad I found this gem of a lecture series, can’t believe its free, wish I had a professor like him during my university years..😀
Thank you once again, Prof. Damodaran for your 20+ years of valuable teaching.
Feel like I a got a FREE college education! Appreciate you sharing the lecture Prof. AD! Many fundamentals regarding valuation can be applied to other aspects of life.
This video was shared by my teacher from the University of Guadalajara, awesome content.
I cant believe this was made 8 years ago, quality can still beat alot of youtubers
I love that he’s getting the attention his channel so deserves. I had done a post about him literally on LinkedIn on how he he’s the hidden gem!
Honestly, I feel like I should be paying for this information. Thank you so much for a such clear explanation
Aswath, I love that you bring up "herd mentality" with the lemmings analogy... BUT that isn't really how lemmings work!
They don't die from falling off a cliff. They all jump off because they think the ocean below is just another lake that they can cross in the course of their migration. Lemmings that approach the ocean from a beach (as opposed to a cliff) ALSO enter the water en masse -- so you see it's not a "jumping off a cliff" thing. Regardless of their entry point, these lemmings swim away from land, thinking that, as in a lake, they will eventually reach the other side. Of course, they never do. They simply exhaust themselves swimming and drown.
However, your point about herd mentality still holds! Thank you for this great series!
God I don’t know about valuation .. but this man knows how to make it interesting.. my valuation on him went up in 2 mins into this video ..
Creating wealth Through the right information.
Sam's concept is key in beating all odds to excel in this form of online commodity. His management team is quite impressive so far!I'll recommend Expert mr sam deymon . he's the best ive seen. Sam Deymon trade makes me good profits 📈 weekly...
Literally the best lecturer I have ever heard. Thank you for sharing your work with us!
You really have the gift of teaching, Sir. Thank you!
I wish one day all the teachers is the world can able to teach like how is sir Damodaran is doing. When a person teach something that he is interested in not only he teach it simple but also makes the learning experience so much fun and engaging.❤
Thankyou so much for your hard work sir. I looking foreword to my learning journey of valuation in your guidance.
Valuation gives you a foundation to rationally analyze a company before deciding to buy/sell
Problems in valuation:
1. Bias
2, valuation is objective
3. less is more
Three methods
1. Intrisic: based on fundamental
2. Relative: compare based on similar companies
3. Contingent claim: Companies which will only profit if certain events happen
assumption of valuation: MARKET MAKES MISTAKES
That's amazing! A really enormous thanks from a brazilian student!
Holy crap! I wish I found this before! Damodaran baby! Thanks for helping me in my finance course!
Goddamn, these lectures are pure gold. I am so glad I came across them.
I am not from This background , but The way he explain everything is fantastic . I understand each words of his without any problem . Looking fwd to read his books 👍
You are a genius Aswath. This introduction is really useful to understand why we are doing valuations. Thanks for sharing!!
I’m here because of you best pupil, but I’m going to stay to become the best!! Thank you DFV for sending me here🤲🏻💎🤲🏻💎🤲🏻💎
Loved how you simplified everything. Wonderfully explained
Remembering Prof DAMODORAN , Theory of Finance, 230, HAAS 1985, an excellent professor but also a great gentleman!!!
Hands down the best video i found on youtube about valuation !!! thank you sir
Professor thank you for sharing your wisdom. I wish you the best life has to offer sir.
Thank you for putting this valuable content online for everyone.
Just brilliant! Appreciate your work professor Aswath!
Wow. This is briliant!
Cannot wait to see rest of it.
Thank you!
Thank you so much, your videos are probably the most helpful I've found on investing and valuation - I really appreciate the time and effort you've put in to making these videos and I'm going to watch them all 😁👍
==>Type of lemmings:
1. Proud - Crowd investor, momentum trader.
2. Yogi bear - Wants to take advantage of upward momentum and sell the stocks before its downward momentum.
3. Lifejacket - Rational
==>Problems in valuation
1. Biasness
2. Uncertainty
3. Complex valuation models
==>Approach for Valuation:
1. Intrinsic valuation - Emphasis on fundamental analysis i.e. cash flow, growth, risk etc.
Most famous method is "discounted cash flow". (Cash flows, discount rate, life of asset)
2. Relative valuation - Look at the value of similar assets.
Scale measure of price i.e. comparing relative ratios of companies.
3. Option pricing model in context of valuing assets with contingent cash flow. Example, a tech company with patent with can have value in future.
==>The common assumption in all three approaches is that the market makes mistakes. Industry value by market is correct but individual company valuation is wrong. Otherwise valuation could be based on market price i.e. "Market price of a share × No of shares"
My Favourite YT channel
Thanks for uploading such a high quality content. I am delighted to learn from you.
this is the kind of confidence i need in life
Wow, I immediately wanted to learn more. This man gives off the vibe of educator more than schooler. Great video, I'm excited to follow the rest of your series.
Yours,
Float Circuit.
Exceptional explanation, objective, simple and good paced. As good as his books. Thank you for your time teacher.
This was fantastic. I loved the way you can teach this concept through effective metaphor. Thank you
Can’t believe this is free 🤯