Podcast Episodes
Back to Search
Session 23: The Options to Expand and Abandon, Financial Flexibility and Distressed Equity
We started this class by looking at the option to expand, where your capacity to enter or expand into new (big) markets can justify up-front bad inve…
5 days, 12 hours ago
Session 17: The Financing Mix Trade off
In this class, we started our discussion of the financing question by drawing the line between debt and equity: fixed versus residual claims, no cont…
5 days, 18 hours ago
Session 22: The Option to Delay
In this shortened session after the webcast, we looked at the option to delay and applied it to valuing patents and undeveloped natural resource rese…
6 days ago
Session 19: First Steps on Pricing
We started the class by setting the stage of pricing companies, contrasting the pricing process with the value process. The rest of the class was our…
6 days, 6 hours ago
Terminal Value Myth 5: The Terminal value ate my DCF!
In a DCF of a business, the terminal value will account for a large proportion of value and this is viewed by some as a flaw in DCF and by others as …
6 days, 12 hours ago
Terminal Value Myth 4: Negative Growth Rates are impossible
In this session, I confront the myth that you cannot do a DCF with negative growth rates and that the perpetual growth model will not work if you hav…
6 days, 18 hours ago
Session 18: Optimizing Financing Mix
We started this class by completing the debt trade off, by bringing in agency costs and financial flexibility, and looking at a financing hierarchy, …
1 week ago
Terminal Value Myth 3: Growth is good, more growth is better!
In the perpetual growth model, increasing growth while holding all else constant will always increase value. That is the problem. If you follow consi…
1 week ago
Session 18: Deconstructing Multiples
In this session, we continued with our discussion of pricing, starting with the analytics that drive PEG, PBV, EV/EBITDA and revenue multiples. Durin…
1 week ago
Terminal Value Myth 2: As g approaches r, it is to Infinity and beyond!
Many analysts when they first see the perpetual growth model feel the call of Buzz Lightyear, since moving the growth rate towards the discount rate …
1 week ago