Uploaded April 2025 | Updated September 2026, 1 week ago
In this session, we started by closing the chapter on pricing, with pricing across an entire market (using a market regression). We then looked at asset based valuation: liquidation valuation, accounting valuation and sum of the parts valuation. Specifically, we focused on when it makes sense to value a company by valuing its assets and what pitfalls to avoid. If you are interested in a more extensive assessment of companies like United Technologies, you may find this reading useful:
papers.ssrn.com/sol3/papers.cfm?abstract_id=1609795
We then started our discussion of the valuation of private companies by noting how the lack of a market price for a business can affect your valuation in implicit and explicit ways, and then arguing that the value you attach to a private business can depend on why/for whom you are doing the valuation.
Slides: nyu.box.com/s/d9z0i74oxs7myxq8lmvcqpraa1f75xtu
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session20Atest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session20Asoln.pdf
In this session, we started by closing the chapter on pricing, with pricing across an entire market (using a market regression). We then looked at asset based valuation: liquidation valuation, accounting valuation and sum of the parts valuation. Specifically, we focused on when it makes sense to value a company by valuing its assets and what pitfalls to avoid. If you are interested in a more extensive assessment of companies like United Technologies, you may find this reading useful:
papers.ssrn.com/sol3/papers.cfm?abstract_id=1609795
We then started our discussion of the valuation of private companies by noting how the lack of a market price for a business can affect your valuation in implicit and explicit ways, and then arguing that the value you attach to a private business can depend on why/for whom you are doing the valuation.
Slides: nyu.box.com/s/d9z0i74oxs7myxq8lmvcqpraa1f75xtu
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session20Atest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session20Asoln.pdf
