Class in Session: Equity Valuation with Professor Damodaran

I just discovered that Professor Aswath Damodaran is teaching his equity valuation class this spring and webcasts of his classes are available free online. I discovered the new webcasts when I was searching for a valuation spreadsheet to analyze US Bancorp. Just like when I was back in college, I’m once again late for class.

Never the less, I plan on going through all the video class sessions over the next few months.  Would anyone be interested in join me? Maybe we could start a study group here for members of Fat Pitch Financials.  Let me know in the comments section if you are interested.

Professor Damodaran’s course covers the following topics:

  • Approaches to Valuation
  • Discounted Cashflow Valuation: Equity versus Firm
  • Reconciling firm and equity valuation
  • The Riskfree Rate
  • Historical Risk Premiums
  • Country Risk Premiums
  • Company Exposure to Country Risk
  • Implications for multinationals
  • Implied Equity Risk Premium
  • Introduction to Betas
  • Bottom up Betas
  • Cost of Debt
  • Weights for Cost of Capital
  • Dealing with hybrids
  • Getting earnings right
  • Reinvestment needs – Cap ex and working capital
  • Debt cashflows and Cash flow to Equity
  • Historical Growth Rates
  • Analyst Estimate of Growth
  • Fundamental Growth in EPS
  • Fundamental Growth in Equity Earnings
  • Fundamental Growth in Operating Income
  • Revenues and Margins: High Growth Firms
  • The Terminal Value Computation
  • Terminal Value Dynamics
  • Loose Ends in Valuation
  • Dividend Discount Model and Implied Growth Rates
  • Valuing the Entire Market
  • FCFE Models and Emerging Market Risk
  • Circular Reasoning in DCF Models
  • The value of corporate governance
  • Valuing distresssed companies
  • Valuing Young Companies
  • PE Ratios
  • More on PEG Ratios
  • EV Multiples (FCFF, EBIT and EBITDA)
  • Book Value Multiples
  • Revenue Multiples
  • Relative Valuation versus DCF Valuation
  • Valuing Private Companies

Along with the webcasts, there is also a three part course packet that includes the overhead slides for the lectures. The packet is divided into the following three parts:

I look forward to working through this course since Damadoran wrote the book on stock valuation. I’ll share highlights of what I discover with you here.


  1. By TJP

  2. By codemonkey

  3. By Shahin

  4. By Dom

  5. By George

  6. By John Hall

  7. By Dom

  8. By John Hall

  9. By Calvin

  10. By codemonkey

  11. By Oswaldo

  12. By Derick

  13. By TT

  14. By Gretchen Imbergamo

  15. By Nick

  16. By Justin Dopierala

  17. By Neilay

  18. By PL

  19. By George

  20. By Rick

  21. By Aftab

  22. By raju

  23. By Tra Lee

  24. By Niraj

  25. By A

  26. By Ricardo

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