Uploaded March 2025 | Updated September 2026, 1 week ago
In this class, we started with a look at customizing discounted cash flows models to reflect the companies that we are valuing, talking about equity versus firm valuation and choice of growth patterns We then moved on to a discussion of cash holdings and why investors may discount that cash in the hands of some companies, to cross holdings, and why they are difficult to incorporate into value, and to other assets that you may consider adding on, because we have not considering them yet. On the latter, the key component to remember is not to double count an asset, by first counting its cash flow and then the value of the asset itself. Finally, I attach a weekly challenge for this week, built around terminal value. Please try it when you get a chance. It is simple but it will reinforce some key components of what we did in class.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/looseendsnew.pdf
Slides: nyu.box.com/s/hzczx1j4s66cen6ud4kawbhfvve7y5pz
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session13Ctest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session13Csoln.pdf
In this class, we started with a look at customizing discounted cash flows models to reflect the companies that we are valuing, talking about equity versus firm valuation and choice of growth patterns We then moved on to a discussion of cash holdings and why investors may discount that cash in the hands of some companies, to cross holdings, and why they are difficult to incorporate into value, and to other assets that you may consider adding on, because we have not considering them yet. On the latter, the key component to remember is not to double count an asset, by first counting its cash flow and then the value of the asset itself. Finally, I attach a weekly challenge for this week, built around terminal value. Please try it when you get a chance. It is simple but it will reinforce some key components of what we did in class.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/looseendsnew.pdf
Slides: nyu.box.com/s/hzczx1j4s66cen6ud4kawbhfvve7y5pz
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session13Ctest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session13Csoln.pdf
