Episode Details

Session Description: With long financial histories, and settled business models, firms in their mature phase should be easiest to value and price. That said, in this session, I look at the questions of how best to deal with the effects of changing the management of a mature firm, as well as imminent disruption of the core business. I argue that all mature firms can be valued for the status quo (existing management) and with change, and that the expected value of control stems from the difference between the two values.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch12.pdf
Exercise:
For the mature company in your peer group:
a.     Given what you have learned about your company, what is your valuation story?
b.     Does your valuation story pass the 3P test?
c.     How does your valuation story play out in your valuation inputs (revenue growth, margins, reinvestment, and risk)?
d.     Given these valuation inputs, what is your valuation for the company?
e.     How uncertain are you about this valuation? How do you deal with this uncertainty?

Learn more about your ad choices. Visit megaphone.fm/adchoices