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Data 2017 Update 3: Cracking the Currency Code
Description
When valuing a company, especially one with operations in many countries, you are faced with the challenge of what to do about currency. Which currency should you pick to value the company in and how will the value change as you switch currencies. I make the argument in this session that if you are consistent in your currency treatment, your valuations should be invariant to currency. I also report on how risk free rates, inflation and real growth vary across countries at the start of 2017.
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/dataupdate3.pdf
Blog Post: http://aswathdamodaran.blogspot.in/2017/01/january-2017-data-update-3-cracking.html
Data sets:
1. Government Bond Rate & Risk free rate by currency: http://www.stern.nyu.edu/~adamodar/pc/blog/currencyriskfree2017.xlsx
2. Fundamental Risk free rate by currency: http://www.stern.nyu.edu/~adamodar/pc/blog/FundCurrencyRiskfree2017.xlsx
3. Cost of capital for global industries, with currency converter. http://www.stern.nyu.edu/~adamodar/pc/blog/waccGlobalPost.xlsx
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