Uploaded March 2025 | Updated September 2026, 1 week ago
We started this session by finishing up the discussion of connecting stories to numbers, and how critical it is to keep the feedback loop open. We also looked at how stories can change or break. In that context, you might find this post that I had on how earning reports change stories useful:
aswathdamodaran.blogspot.com/2014/08/reacting-to-earnings-reports-narrative.html
We then looked at valuing a simple company (Con Ed) with a simple model (stable growth DDM) and how a market crisis can change value (with 3M). We then moved on to with a, model to value an index (the S&P 500). If you are interested in an updated version, where you can change the numbers try this link:
https://pages.stern.nyu.edu/~adamodar/pc/blog/S&PValueJan2025.xlsx
If it looks familiar, because it was your first valuation of the week in this class.
Start of the class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests//dcfvaltests.pdf
Slides: nyu.box.com/s/6opgmg5a4wosr79itlv02z9o2yyx4nu1
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session14Ctest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session14Csoln.pdf
We started this session by finishing up the discussion of connecting stories to numbers, and how critical it is to keep the feedback loop open. We also looked at how stories can change or break. In that context, you might find this post that I had on how earning reports change stories useful:
aswathdamodaran.blogspot.com/2014/08/reacting-to-earnings-reports-narrative.html
We then looked at valuing a simple company (Con Ed) with a simple model (stable growth DDM) and how a market crisis can change value (with 3M). We then moved on to with a, model to value an index (the S&P 500). If you are interested in an updated version, where you can change the numbers try this link:
https://pages.stern.nyu.edu/~adamodar/pc/blog/S&PValueJan2025.xlsx
If it looks familiar, because it was your first valuation of the week in this class.
Start of the class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests//dcfvaltests.pdf
Slides: nyu.box.com/s/6opgmg5a4wosr79itlv02z9o2yyx4nu1
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session14Ctest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session14Csoln.pdf
