Uploaded April 2025 | Updated September 2026, 1 week ago
In this session, we continued on the question of how best to value a company by first looking at the drivers of value - revenue growth, margins and reinvestment. We then spent some time talking about terminal value, its disproportionately large role in valuation and the myths that surround it. We brought these ideas together in valuing Baidu, Vale and Disney. I used Disney's valuation to illustrate how choices on investing, financing and dividends play out in value.
Slides:
Post class test: nyu.box.com/s/8j459b44omke7dh6xuwlukr6xnbewx1w
https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session25test.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session25soln.pdf
In this session, we continued on the question of how best to value a company by first looking at the drivers of value - revenue growth, margins and reinvestment. We then spent some time talking about terminal value, its disproportionately large role in valuation and the myths that surround it. We brought these ideas together in valuing Baidu, Vale and Disney. I used Disney's valuation to illustrate how choices on investing, financing and dividends play out in value.
Slides:
Post class test: nyu.box.com/s/8j459b44omke7dh6xuwlukr6xnbewx1w
https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session25test.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session25soln.pdf
