Uploaded March 2025 | Updated September 2026, 1 week ago

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In this session, we completed our the challenges in valuing young companies, and then took a look at mature companies in transition, and how you have to value the status quo company and the restructured one to make a judgment on investing in it. We then moved on and looked at declining companies, where your forecasts may have to show declining revenues and margins, and added a twist with distressed companies, where you have to follow up your DCF, by estimating a likelihood of failure and the value of your equity if that happens.

Start of the class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/dcfvaltests2.pdf
Slides: nyu.box.com/s/i26bvwm05of5b9yvmrjgw9w5jjyqbhrp
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session15Ctest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session15Csoln.pdf