Episode Details

In today’s session, we continued on the dark side of valuation with a look at mature companies on the verge of transitions, and how you have to value the status quo company and the restructured one to make a judgment on investing in it. We then moved on and looked at declining companies, where your forecasts may have to show declining revenues and margins, and added a twist with distressed companies, where you have to follow up your DCF. In the second half of the class we examined the issues (country risk, cross holdings and currency gyrations) that are part of emerging market company valuations and began our assessment of why banks pose special challenge in valuation. In particular, we valued Deutsche Bank in October 2016, and if you are fascinated with this horror story, you may want to read this post from the time:
https://aswathdamodaran.blogspot.com/2016/10/deutsche-bank-greek-tragedy-at-german.html

tart of the class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/dcfvaltests2.pdf
Slides: https://pages.stern.nyu.edu/~adamodar/podcasts/valUGspr23/session17slides.pdf
Post class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session17Dtest.pdf
Post class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session17Dsoln.pdf

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