Question: The change in non-cash working capital has to be consolidated with signs reversed according to slide p.7. I wonder since it is being taken from the statement of cash flows: Hasn't that switch of signs already been incorporated? In other words, e.g. Microsofts inventories increase to 7,800 from 7,038 the year prior (see balance sheet). This positive increase of +741 is then already reversed to -737 in the statement of cashflows. Therefore I would think the negative effect on Cashflows has been accounted for and it is false to switch it around again. What are your thoughts? Thx 4 your lessons professor !

Thank you sir, this is pure gold! Very generous of you to post these here :)

So what beta should we finally use in our models...? The one in "Unlevered beta corrected for cash" column or the one in the "average beta" in the last column?

damodaran the goat

Hi Prefessor Damodaran,thank you for sharing your information. Have you valued Palantir before? I am eager to know your story and numbers about Palantir.

At 46:25 If Disney funded the entire acquisition by debt, then the new beta for Disney would have been ~1.5

00:23 Valuing a company involves considering risk-free rates and equity risk premiums from different regions. 04:03 Risk-free rates should be selected based on the currency of the cash flows being estimated. 08:14 Historical risk premiums can be deceptive due to the standard error problem. 10:20 Understanding risk-free rates and historical risk premiums 14:19 Obtaining default spreads for countries without sovereign CDs or government bonds. 16:22 Sovereign CDs Market and default spread risk assessment 20:13 The inflation-protected T-bond rate can be used as the real risk-free rate. 21:56 Risk-free rates vary across currencies 25:42 Inflation drives interest rates and exchange rates. 27:27 Risk-free rates can change across currencies and time. 31:08 Venezuelan government's misrepresented bond rate and finding alternatives for risk-free rates. 32:53 Risk-free rates can be calculated using inflation differentials, even in cases where government bonds are not available. 36:25 Interest rates are influenced by expected inflation and real interest rates. 38:17 Focus on inflation and real growth to predict rates accurately. 41:58 Determining risk free rate and equity risk premium 43:39 Equity risk premiums are influenced by risk aversion, age, and historical trends. 47:11 Historical equity risk premiums are unreliable due to large standard errors and noise in stock returns. 49:05 Historical risk premiums are not reliable due to survivorship bias. 52:40 Estimating equity risk premiums for other countries using default spreads and US equity risk premium. 54:20 Understanding and adjusting for risk when calculating equity risk premiums 58:02 Using default spread to estimate equity risk premiums. 59:44 AAA rated countries have a 4.6% equity risk premium. 1:03:24 Equity risk premiums used in unusual ways 1:05:18 Frontier markets lack ratings, affecting equity risk premiums. 1:09:00 Consider the country risk premium when estimating equity risk. 1:10:41 Equity risk premiums should be weighted by the company's operations. 1:14:31 Global revenue breakdown is important for assessing equity risk premiums. 1:16:23 Equity risk premium is crucial for company valuation. Crafted by Merlin AI.

I know nothing about trading or Investing and I wanna get started. What are some strategies to get started with?

👍🏻

how to find divident and buyback for nifty 50 ?

Class starts 2:10

Professor, I am still having difficulty understanding the reasoning. If I am valuing a company that earns 75% of its income in India and I choose the dollar as the currency for the valuation, using the US market risk-free rate and ERP, is it reasonable to project the growth rate in terms of India's economic growth? Wouldn't this mean that I am scaling revenue in dollars using a growth rate based on the Indian economy, which seems incorrect? I feel like I'm missing something.

ginsu knives analogy.... :Whatta bargain'...... Thank you professor

CAPM... "gets beaten all the time but hangs in there" 🤣

1:01:06

Very clear explanation. Agree with everyone that Prof Damodaran is the best at what he does

Big fan !

Por favor me pueden indicar de donde se tomo el dato de los 85,6 mil de investigación y desarrollo? Gracias

shouldn't you be looking at median rather than average returns? Because then you get bias from large moves

@17:05 -> In order to get Unlevered beta of business, what was the tax rate taken? (From country of incorporation of vale or by geography ie where it gets most of its revenues?)

Class starts at min 1:44

@1:14:18 => In conventional approach formula, why (1-t) multiplies whole Debt ('D') as only the interest payments are tax deductible & not the principle amount right?

Well well, NVIDIA is now trading at $1200+ …..definitely a bubble !

Well well, NVIDIA is now trading at $1200+ …..definitely a bubble

Not sure how the guy who valued Indigo calculated his debt/equity. Would love to know. Should'nt he be considering Lease Liability in debt which is around INR 49400 Cr.

What time period and what tick data (daily/weekly/monthly) do you prefer when calculating raw betas in your datasets which have been uploaded online..?

how is ev/sales different than p/e ratio?

Top class content for free, many people charge 000s of $$ for a hyped but average and basic valuation courses...Hats off to you Aswath

zero practical application ...all theory and very limited example usuage ...Overrated

28:34 (kzfaq.info/get/bejne/pM94aJV_xqzGcac.html ). Professor makes a small mistake in claiming that Greeks were advanced in Mathematics and that they thought of Least Square method first. The truth is that Greeks used a number system which as precursor to the Roman numeral. Indian place value system (called as Hindu/Hindu Arabic/Arabic numerals depending on proper referencing) reached Europe in 11th Century and widely adopted in 15th century. You can imagine what we can do in Roman numerals in terms of mathematical operation. Forget square root, multiplication and division is next to impossible. Even addition is a pain using this numerals with no concept of decimal and fractions in addition. Such stories of Greek superiority is merely Eurocentric version of historical fiction with no evidence or primary sources.

Thank you Professor!

what if NI is negative? Or dividend payout is greater than 100%. You will get a negative retention ratio or it will be greater than 1.

i did not understood the part in which he keeps reinvestment rate 10% for stable growth period

My god, thank you!

Does warren Buffett compute all this?

The best!

You rock prof!🎉❤

Please add the Nepal in the list too sir

Awesome 🙌 Thank you professor ! It is helpful.

🛐🛐🛐

starts at 2:03

What if the 2 yr, 5yr betas are wildly different? What one would you pick?

Thank you very much

Fantastic!

How to contact you

In most Indian companies today, the promoters hold over 50% stake. It is said that it is good for the stockholders as these promoters have skin in the game. But, as per your teachings, if I am getting it correctly, that's bad for the stakeholders? I am confused. Could you please clarify?

Great sessions! Loved the explanations. All the very best sir!

thank you Professor

I noticed a quote by Sir that said, "The definition of insanity is doing the same thing over and over again." It gives me serious chills. 🥵 did he copied that dialog from vaas . can;t anything sir could be a far cry 3 fan .

Great wrap up. I loved reading each chapter and following up watching the videos. Thank you.