Episode Details

During today's session we finished the last loose ends in valuation and started on connecting stories to numbers. The way in which companies and equity research analysts treat stock based compensation is criminally negligent and I hope that you found this session useful in clarifying your thinking on the topic. We then started on how story telling is at the heart of valuation, and a five step process for connecting stories to numbers. If you want a longer version of my stories to numbers session, you may prefer this Google talk version that I did a few years ago on the same topic:
https://www.youtube.com/watch?v=uH-ffKIgb38
It is longer and in a little more detail. To put a bow on this part of the class, I have a blog post that you may find enjoyable about dysfunctional DCFs.
http://aswathdamodaran.blogspot.com/2015/02/dcf-myth-1-if-you-have-ddiscount-rate.html

Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/looseends2.pdf
Slides: https://nyu.box.com/s/c3o3mv58tiihfub88ejw7z9rosryrt54
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session14aXtest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session14aXsoln.pdf

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