Class in Session: Equity Valuation with Professor Damodaran

Tuesday, April 3rd, 2007 | Stock Tools with 28 Comments

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.


Comments

  • I can squeeze in sometime after classes and on the weekends. Count me in. This is great stuff.

    TJP April 3rd, 2007 at 10:18 am
  • Count me in!

    I’ve known about this resource for a while and I’ve gone through some of it. But I could use the discipline of going through it in a group.

    codemonkey April 3rd, 2007 at 12:11 pm
  • I would enjoy doing this as well, count me in.

    Shahin April 3rd, 2007 at 2:37 pm
  • I am interested in joining the study group, thanks.

    Dom April 3rd, 2007 at 3:21 pm
  • I’m glad to see the four of you are interested. I’m going to give it until the end of the week before we start reviewing the lectures. Since we are all probably very busy, maybe we can cover one lecture per week together. How does that sound?

    George April 3rd, 2007 at 7:53 pm
  • I’m studying for the CFA right now and this might be a good resource. The first lecture basically goes over the course details and the introduction to valuation power point slides on the website (starts around 55 min or so). I think it might be wise to start with lecture 2.

    John Hall

    John Hall April 3rd, 2007 at 9:23 pm
  • I am also studying for the CFA (level 2) right now. Exam is in early June and also with a full-time job I may not be too involved until after the exam. I hope the group does not mind me not paying full attention in class until June.

    Dom April 3rd, 2007 at 9:30 pm
  • In regards to the first lecture, the first 55 minutes or so really are just introduction to the course. I was surprised that the last third though actually is a pretty interesting introduction. Not a throwaway introduction. He talks about what’s on the slides, but the stories that he tells to illustrate them make it worth it.

    John Hall April 3rd, 2007 at 9:47 pm
  • You can count me in too.

    Calvin April 3rd, 2007 at 10:39 pm
  • One lecture a week sounds pretty good.

    I’m writing the CFA (level 3) too. but I think I’ll be able to make time for this depending on what the timing is like.

    Thanks, George, for organizing this. I’ve found your website very educational and informative. And this study group is another great idea.

    Cheers.

    codemonkey April 4th, 2007 at 12:24 pm
  • Count me in…. !……

    Oswaldo April 4th, 2007 at 5:31 pm
  • I will be going through 2 – 3 of these lectures per week. I will try to contribute what I can to the group study.

    Thank you for bringing this to my attention, I have never found education of this degree available for free.

    Derick April 4th, 2007 at 8:52 pm
  • George,

    I would like to be included.

    TT April 19th, 2007 at 5:21 am
  • I’ve heard alot about his work. Is is too late to get in on this group?

    Gretchen Imbergamo April 19th, 2007 at 9:49 am
  • I am also sitting for the CFA level 1 exam on June 2nd, but would love to particpate after that. Great idea George!

    Nick April 19th, 2007 at 12:34 pm
  • Count me in too, sounds like fun.

    Justin Dopierala April 20th, 2007 at 12:32 pm
  • I would love to participate as well. How do I go about joinh the group.

    Thanks in advance for setting this up George, excellent idea!

    Neilay April 20th, 2007 at 11:00 pm
  • This is very interesting. Is it too late to join now? I guess I will have a lot to catch up.

    PL May 6th, 2007 at 8:56 pm
  • I am glad that you guys like valuation enough to take time out of your schedules to listen to my webcasts… I hope that they stand on their own, but just in case you get stuck, you can come to the source…. Good luck and have a great summer!

    Aswath Damodaran May 21st, 2007 at 12:16 pm
  • Welcome to Fat Pitch Financials, Professor Damodaran. I’m honored that you stopped by my blog today. Thank you so much for offering to help us if we get stuck. We really appreciate it. I want to thank you for making your lectures available on the web and for posting your course material.

    As we run into issues, I’ll be sure to collect and organize them before sending anything to you.

    George May 21st, 2007 at 11:03 pm
  • I’m in.

    Rick May 26th, 2007 at 8:29 pm
  • hey i m planning to do my CFA in december and this could be of great help for me so count me in

    Aftab June 7th, 2007 at 4:00 am
  • pls send me the link I am in outside US

    raju June 13th, 2007 at 2:33 pm
  • Pls count me in!

    Tra Lee October 19th, 2007 at 10:51 am
  • Can somebody please tell me whether these sessions by professor Aswath Damodaran are completely free of charges and obligations ? If these sessions are completely free of charges and obligations, then i am very much interested because I am very passionate about this subject. Is it too late for me to join this study group ? What is the procedure for enrolling myself in this study group ?

    Niraj June 5th, 2008 at 12:25 pm
  • Is there a torrent where I could download the whole set of lectures?

    A February 10th, 2010 at 5:04 pm
  • pls send me the link I am in Argentina, and I would like to be included.

    Ricardo August 8th, 2010 at 10:53 am

Leave a Comment

Funded By