Episode Details

We started this class with a model to value an index (the S&P 500). If you are interested in an updated version, where you can change the numbers try this link:
https://pages.stern.nyu.edu/~adamodar/pc/blog/S&P500ValueJan2024.xlsx
If it looks familiar, it is because it was your first valuation of the week.
We then looked at valuing young companies, with the focus on Amazon. If you are interested in how best to adapt valuation models to value companies on the dark side. Specifically, we examined how best to value young companies with limited information. If you are interested, try this paper on valuing young companies:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1418687
I also have a blog post that you may find relevant for today’s discussion on how dilution in future years is already incorporated into value:
http://aswathdamodaran.blogspot.com/2018/07/share-count-confusion-dilution-employee.html
In the last part of the class, we value a mature company (Hormel) with the possibility of a change in management, and concluded the expected value will depend on the chance of that change occurring.

Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/dcfvaltests2.pdf
Slides: https://nyu.box.com/s/3ok83tpehjwv9qt9vv10j0yz3519cr2n
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session16Dtest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session16Dsoln.pdf

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