Uploaded March 2025 | Updated September 2026, 1 week ago
In this class, we spent some time on the key value drivers - revenue growth, operating margins and sales to capital, before tying up loose ends on terminal value, with the dangers of waiting too long to put your company into stable growth and the importance of long term excess returns in determining terminal value. In the last part of the class, we looked at building a DCF model, and how your choices of which cash flows to discount, the discount rate to use and the growth rates/patterns for a business have to be tailored to the firms.
Start of the class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/termvalue.pdf
Slides: nyu.box.com/s/0a7ak39hdejyp5vq0x58l55dsir0cwnx
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session11Atest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session11Asoln.pdf
In this class, we spent some time on the key value drivers - revenue growth, operating margins and sales to capital, before tying up loose ends on terminal value, with the dangers of waiting too long to put your company into stable growth and the importance of long term excess returns in determining terminal value. In the last part of the class, we looked at building a DCF model, and how your choices of which cash flows to discount, the discount rate to use and the growth rates/patterns for a business have to be tailored to the firms.
Start of the class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/termvalue.pdf
Slides: nyu.box.com/s/0a7ak39hdejyp5vq0x58l55dsir0cwnx
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session11Atest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session11Asoln.pdf
