Uploaded August 2024 | Updated September 2026, 1 week ago
In this session, I address a key question - how do you determine where a company (your own or one that you are interested in) falls in the life cycle, starting corporate age but moving on to operating metrics. I also look at the determinants of the length (how long a company survives), the height (how big it gets) and slope (how quickly it scales up) as a prelude to drawing a contrast between successful 21st century and 20th century companies.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch3.pdf
Exercise:
a. For each of the five companies on your list, estimate the corporate age (from founding year to today).
b. For each of the five companies on your list, examine the revenue growth rates and operating margins of the industry groups they belong to.
In this session, I address a key question - how do you determine where a company (your own or one that you are interested in) falls in the life cycle, starting corporate age but moving on to operating metrics. I also look at the determinants of the length (how long a company survives), the height (how big it gets) and slope (how quickly it scales up) as a prelude to drawing a contrast between successful 21st century and 20th century companies.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/CLC/slides/Ch3.pdf
Exercise:
a. For each of the five companies on your list, estimate the corporate age (from founding year to today).
b. For each of the five companies on your list, examine the revenue growth rates and operating margins of the industry groups they belong to.
