His voice is ASMR. There's just something about his cadence. I feel like I'm about to reach valuation nirvana just by listening to him.

Love this guy’s face, voice, and sweater

00:52 the essence of intrinsic valuation: (1) cash flow (2) growth (3) risk 01:09 discount of cash flow valuation ≠intrinsic valuation 01:18 intrinsic valuation is designed for "cash flow generating" assets. [can value a start-up company. cant value an art piece] 01:54 intro of "discount of cash flow valuation": (1) present value of the expected cash flow on that asset 02:32 2 ways to set up a "discount of cash flow valuation": (1) expected cash flows, look at all possible(good or bad) outcomes. the "discount rate" is how you adjust the risks, higher "risks" with higher "discount rates" than save the assets. 03:08 adjust the "discount rate" or adjust the "cash flow" for risk 03:26 risk-averse for "certainty (risk-free) income 04:31 for a company to have value, its cash flows have to have value at "some point in time". 07:07 value either the Equity of the business or the entire business 07:54 the value of equity(cost of equity) = cash flow to equity discounted back at that rate of return 09:53 2 ways to value equity: (1) value equity directly by taking cash flow to equity & discounting at the cost of equity (2) value equity indirectly by valuing the business and subtracting out debt 10:13 first principles in valuation: never mix and match cash flow don't discount cash flow to equity the cost of capital don't discount cash flow of business at the cost of equity. make sure your cash flow & discount rate are matched up. 10:52 intrinsic valuation = valuing companies based on their specific characteristics 10:59 discounted cash flow valuation = a tool to estimate intrinsic value, need to estimate expected cash flow & adjust the risk (either by replacing the expected cash flow with certainty equivalents/ or adjust the discounted rate for risk) 11:12 have to make a choice: (1) valuing the E (2) valuing the entire business that choice will govern how you estimate the CF & discount rate you use.

A great teacher is one that can take the most complex idea and explain it in the most simplest way. Thank you for the value you give us!

Amazed with clarity in his speech, depth in research and making the complex topics flow like a waterfall.. Just wow.. Thanks Professor!

blessed to learn from valuation god himself . he could sell this knowledge at very high price but his purpose was so clear . he just want everyone to learn and grow in life , I don't know that people like you exist . I just love every lecture you posted . you are the best teacher who can teach even someone who teaches valuation himself .

The confidence in his voice is gorgeous. The way he says every word conveys certainty and you know he knows what he is saying "no gas".

This man is the oogway of finance

Setting aside the topic, this guy is an excellent teacher. He is no joke.

This is just pure gold. So lucky to get my hands on this series.

Wooowww.. Simplicity in the most complex topics. Damodaran sir did in 15 min what my prof couldn't in entire semester. Thank you sir.

Absolutely an incredible pedagogue, thank you for sharing this level of knowledge!

These lessons are excellent. And free! Much appreciated.

How is this free?! I adore this man. He is my new sleeping music.

You are a gifted teacher!

Omg! What did I just stumble upon? I’ve been learning how to read and study annual reports and financials, when I stumbled upon this. Thank you so much sir. I can’t believe this is on KZfaq for everybody.

Professor Damodaran makes me regret not going to NYU for my MBA

This man keeps things simple but highly effective. Respect.

Clear, simple, and to the point!

Your new messenger for the corporate world

Dr. Damodoran you are amazing... Taking my FMVA certification from The CFI Institute and this is way better.

Such beauty in teaching the concepts! Much like a story that you just want to keep listening to.

I appreciate your work and will to inspire others very much, thank you!

Absolutely clear explanation of something that is tough to understand.... Thanks Mr damodaran

Anyone else need to watch the course 6x to grasp the concept? I do. Amazing we can have access to this great lecture for free!!

Just wondering why some people did dislike this amazing tutorial? They should have posted constructive comments if there is something they want to add or discount.

This is of immense value (no pun intended)!!! Thank you very much for sharing these amazing series and helping everyone become a better investor professor!

A great teacher....I learn a lot from him. Thank you sir.

This is such a great video. Complex topics that are purely simplified.

ITS A GIFT TO THE STUDENTS OF THE WORLD !!

Thank you for making this valuable videos. I am grateful for it!

This is what a Master looks and speaks like.

what a great Professor... thanks Prof Damodaran..

A boon to an entire generation Thank you damodaran sir

Excellent - very simple and clear explanation to the concepts.

Thanks a lot Professor for sharing your videos here. Really helpful for global student community.

Soothing sound 💙

Thanks for educating.

*Thank you for this gift. The series is phenomenal and best of all accessible. I have picked up 4 or your books but haven't gotten around to reading them. I will be doing that very soon. But for now thank you for this.*

Hi Aswath, I am coming from zero background in finance. I liked your google talk so i wanted to learn more in detail. But In this lecture you directly jumped into discounted cashflow and start using technical term like expected value and risk-free. I understand you want to be complete in your statement, but I would appreciate if you can make a lecture series for more common people like me explaining or removing the complexity of these terms. Like those talks at Google. Since i know some maths, i understand that expected value means mean value, but i couldnt understand the risk - what exactly it is. Its hard to wrap my head around it. Please consider making video which is easy to consume. I am writing this because i believe you are a good teacher. Big Fan!

Incredible delivery

Whenever I hear him talking, I feel like he's telling me " I'm not angry with you, I'm just disappointed "

Listening to this guy makes me feel smarter already

Amazing brother great breakdown

YOU SHOULD HAVE 10 MN SUBS MAN SO GOOD CAME HERE AFTER RACHNA RANADE MAM

Thank you , love your online session. Very clear.

Thank you

👍👍👍 Great Session....

EVERYTHING GOES ABOVE MY HEAD !!! OMG

No one: Me to Sir Aswath : YES MASTER 👁👄👁

This is gold.

Superb, brother Damodaran...

Fantastic sessions

thanks for the lessons

Aswath is the real GOAT

AMEN

AMAZING!

Thank you fine sir.

The Intrinsic value of Damodaran must be over the roof

Thank you...

Amazing thank you

Omg. It FINALLY CLICKED! Why the fuck my lecturers couldn't explain it so simply!!!

Thank you for this video. Requesting to include an example in the video for this evaluation,

Thank you for the sharing. May I know the difference of assumption needed to be made when calculating COST OF EQUITY using (a) CAPM model, (b) Dividend growth model and (c) Equity payout method (e.g. dividends - share issued + treasury purchased)? And I am curious since these 3 methods always lead to different answers, which method the best to apply or need to depend to the circumstances?

Watching back in 2019

ThANK YOU SO MUCH!!! PROF. DAMODARAN

That dividend discounted model blew my mind.

Is there anywhere any actual company being valued .That would be easier for some to understand.

Thank You🙏

Dear sir i understand DCF is one of the tools available to arrive at intrinsic value can you suggest few more tools available under intrinsic valuation approach. Further we arrive book value per share based on Net asset value method under which valuation approach it will be covered. Since Intrinsic approach is based on cash flows and relatives approach based on comparable. Kindly advice

Great!

Is there any source to get those ppt slides or images which sir has shown in the video?

We will value entire business prof . That seems more logical .

I like the way u are making these broad terms simple and understandable. I want you to make videos on financial modelling too, it will be easy for us to gain knowledge.

Great lessons, learning a lot, but probably somwhere at 10min point completely lost everything with all the naming...:)) Will have to re-watch it.

Thank you sir

His Voice is like He is on the Verge of telling Joke....feels like it will happen any time but never happens😂

Are there any courses I can engage in to excel my trading and financial literacy altogether?

Just a newbie’s opinion; business evaluation is better.

at 3:39, i dont see t in the formula, is it that both t & n are the same?

Thanks

The intrinsic valuation of his sleeves extends to his wrists.

I think I am in love with you!

This guy has a really great Bond villain vibe.

good stuff

Can anyone clear something up for me? If the equation calls for the cashflows to be divided by (1+r)^n, wouldn't that mean that the discount rate number would be absolutely massive in later time periods? I think it looks like a simple typo.

it's all going in one ear and out the other. I'm too dumb for this

Has he done any video on SPACS?

2:23

I have this question, if anyone could reply the solution you are great! When we discount the cash flow to the firm at the cost of equity we should get an upward biased estimate right? Like then we are only subtracting what the equity investors demand not including debt payments... from a huge amount like cash flow to business. Similarly When we discount the cash flow to the equity at the cost of capital we should get an downward biased estimate right? Like then we are subtracting what the equity investors demand and debt payments... from a small amount like cash flow to equity which is already have debt subtracted off? Is it something to do with the equation? Like the denominator side is greater or smaller because we sqaure it? [E(CFn)/(1+r)^n]

Sir I'm very interesting to know about Valuation sir from where I have to start my journey what is the first Step lecture I would start , Can i go for this whole lecture sries

Let's complete the series as an actual tribute.

what is this from? what course?

What are other tools for intrinsic valuation apart from DCF

Will someone help me with this? According to sir, when we sit for estimating the cash flows (2:32 min), you take all possible considerations in your estimation, the good and the the bad ones. Once i have a list of estimated cashflows, i take an expected value of these cashflows(assuming it to be an average of all estimates for each year). If we take an average of all good and bad cashflows, wont the cashlfows be risk adjusted, cause now they show the bad possibility also? Which is am assuming is my risk.

❤

3:35 cash flow risk

Hey, this video is super cool. Is there any book you would recommend to read in order to get an in depth knowledge?

What if the company has no debt? You are going the equity way inevitably?

how do you put a number to risk?