Episode Details

We started class today 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&P500ValueJan2023.xlsx
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 talked about valuing mature companies in transition and declining companies.

Start of the class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/dcfvaltests.pdf
Slides: https://pages.stern.nyu.edu/~adamodar/podcasts/valUGspr23/session16slides.pdf
Post class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session16DXtest.pdf
Post class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session16DXsoln.pdf

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