Session 13: First Valuations
from Aswath Damodaran Hosted by Aswath Damodaran
In today's class, we started with a quick review of narrative changes, shifts and breaks and how earnings reports, in particular, can alter your narrative for a company. Since many of you will be dealing with earnings reports in the next couple of weeks, I thought you may find these two posts of interest in how narratives shift, and with them, values:Reacting to Earnings Reports: http://aswathdamodaran.blogspot.com/2014/08/reacting-to-earnings-reports-lets-get.htmlNarrative Resets: http://aswathdamodaran.blogspot.com/2015/08/narrative-resets-revisiting-tech-trio.html we started with two conventional valuations, one of 3M and the other of the S&P 500. We then talked about the valuaton of young, growth companies by emphasizing that you will be wrong 100% of the time and that it was okay, because the market is usually even more wrong. Next session, we will continue with the discussion by looking at mature companies. Start of the class test: www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/dcfvaltests2.pdfSlides: http://www.stern.nyu.edu/~adamodar/podcasts/valfall15/valsession13.pdfPost class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session13Atest.pdfPost class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session13Asoln.pdf
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