Session 11 (Val MBA): More on Value Inputs and Terminal Value
from Aswath Damodaran Hosted by Aswath Damodaran
In this class, we spent some time on the key value drivers - revenue growth, operating margins and sales to capital, before tying up loose ends on terminal value, with the dangers of waiting too long to put your company into stable growth and the importance of long term excess returns in determining terminal value. If yo do get a chance read the posts that I have on terminal value that I sent links to, in my post from Monday (March 4). In the last part of the company, w looked at building a DCF model, and how your choices of which cash flows to discount, the discount rate to use and the growth rates/patterns for a business have to be tailored to the firms.Start of the class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/termvalue.pdfSlides: https://pages.stern.nyu.edu/~adamodar/podcasts/valspr24/session11slides.pdfPost class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session11Atest.pdfPost class test solution: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session11Asoln.pdf
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