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Chapter 11: Roller Coaster Investing - Cyclical and Commodity firms
Description
Description: Support session to accompany chapter 11 of the updated version of the Little Book of Valuation, published in March 2024.
Publisher: John Wiley
Amazon link: https://www.amazon.com/Little-Book-Valuation-Company-Profits/dp/1394244401
My webpage for the book: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/littlebook2ed.htm
In this session, I look at commodity and cyclical companies, and how the volatility in operating metrics created by macro variables and commodity prices can cause valuations to fluctuate, and how best to counter this volatility. I use Toyota from 2009 and Royal Dutch from 2023 to illustrate this process.
Toyota valuation (from 2009): https://pages.stern.nyu.edu/~adamodar/pc/littlebook2/Toyota2009.xls
Shell valuation (from 2023)
https://pages.stern.nyu.edu/~adamodar/pc/littlebook2/ShellValuation23.xlsx
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