Uploaded March 2025 | Updated September 2026, 1 week ago
In the context of valuing commodity companies, I talked about how Monte Carlo simulations can help deal with uncertainty. If you decide to go that route, you can use Crystal Ball (an add on to Excel and freely available to Stern students) to make your excel spreadsheet valuation into a simulation. Finally, in the context of talking about value vs price, and the efficient market view of the gap, I mentioned a documentary on efficient market investing. Here is the WSJ article linking to it:
wsj.com/finance/investing/investing-david-booth-errol-morris-documentary-4dd7ff80?mod=wsjhp_columnists_pos_3
We then moved on to the gap, the different views of the gap and why that gap might or might not close.
In the second part of the class, we turned to pricing, and laid the framework for thinking about multiples as standardized prices, and why it is critical that we make sure that they are consistently defined and uniformly estimated.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/relval1test.pdf
Slides: nyu.box.com/s/n3afpimdjmu4yqlhguq0nh74xmpfiusw
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session18Btest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session18Bsoln.pdf
In the context of valuing commodity companies, I talked about how Monte Carlo simulations can help deal with uncertainty. If you decide to go that route, you can use Crystal Ball (an add on to Excel and freely available to Stern students) to make your excel spreadsheet valuation into a simulation. Finally, in the context of talking about value vs price, and the efficient market view of the gap, I mentioned a documentary on efficient market investing. Here is the WSJ article linking to it:
wsj.com/finance/investing/investing-david-booth-errol-morris-documentary-4dd7ff80?mod=wsjhp_columnists_pos_3
We then moved on to the gap, the different views of the gap and why that gap might or might not close.
In the second part of the class, we turned to pricing, and laid the framework for thinking about multiples as standardized prices, and why it is critical that we make sure that they are consistently defined and uniformly estimated.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/relval1test.pdf
Slides: nyu.box.com/s/n3afpimdjmu4yqlhguq0nh74xmpfiusw
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session18Btest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session18Bsoln.pdf
