This web page is designed to support "Investment Valuation", the third edition. The publisher is John Wiley and Sons. You can navigate the site by either going to individual chapters and getting supporting material by chapter, or by going to the supporting material directly.
The supporting material includes:. You can read the preface to the book by clicking here. If you are an instructor using this book, click here. Since this is the first printing of this edition, there will undoubtedly be typos that have crept in. The corrections can be found here. If you find other errors, please let me know. Illustration 3. Illustration 4. Illustration 5. Illustration 6.
Concept Checks Critical Thinking. Illustration 8. Illustration 9. Analyzing Amazon. Illustration Crew Illustration It has updated interest coverage ratios and default spreads built in apv.
The supporting material includes: Chapter Outlines and overheads : These are saved as pdf files, and you need Adobe Acrobat to read them. You can download Adobe Acrobat by going to the Adobe site. To go to overheads, click here.
Derivations and Discussion : These represent interesting questions that often come up in the context of the specified topic, with discussions and analyses.
Readings : These are readings from business and academic publications that supplement the specific topic.
Solutions : The solutions to each chapter are at the end of each chapter in the web site below. Powerpoint Presentations : These are power point presentations that are designed for use by instructors.
You will need the password to download these as well. Spreadsheets : These are spreadsheets that supplement the topic. They are in Microsoft Excel, and can be used on either a Mac or Windows system.
Datasets : These are useful datasets to supplement each chapter. They generally include industry averages for key variables and represent updates on many of the tables in the book. Web Casts : These are webcasts of the lectures from the valuation class that I teach at Stern. You can use the lecture notes and the text book to follow the lectures. Introduction to Valuation.
Aswath damodaran investment philosophies pdf to word
How do you keep bias out of your valuation? What is the cost of having more detail in valuations? Download as pdf file. Illustration 2.
The potential for misuse with comparable firms. Is there an easy way to tell if a cashflow is an equity cashflow or a firm cashflow? What is the difference, if any, between discounted cashflow and asset based valuation? An open letter to Warren Buffett from a non-admirer.
How different are accounting rules in different countries? How do you value a company when you do not trust the accounting statements? Why is the marginal investor assumed to be diversified? How do I estimate historical standard deviations and variances? How about correlations and covariances? What makes your stock price go up or down? How do I make sure that the inputs to the Black-Scholes model are consistent?
Will the Black-Scholes and Binomial models give me different values and why? How do my views on market efficiency affect how I approach valuation?
Investment Philosophies by Aswath Damodaran
Survival bias in mutual fund performance Bogle on picking mutual funds Crazy market is tough to beat Bonds and T. Bills going back to Should I use the government bond rate of the country where my firm is located as my riskfree rate? What if I have a firm with operations in different countires and cashflows in different currencies?
Aswath Damodaran: Investment Philosophies (Session 1 of 38)
When would I use the arithmetic average risk premium as opposed to the geometric risk premium? Why is the historical premium so much higher than the implied premium in the United States? Greenspan testimony Historical Risk premiums: A reexamination.
Run a regression of stock returns against market returns and estimate risk parameters. Estimate the unlevered beta for a firm and compute the betas as a function of the leverage of the firm.
When can I use the regression beta as my estimate of beta in a valuation? When estimating bottom-up betas by looking at comparable firms, how should I define comparable firms?
Should I adjust the beta for a firm's size or other characteristics? Can I use the yield to maturity on a bond issued by the company as the cost of debt?
If I have an actual rating, do I need to even estimate a synthetic rating? How can I build a more complete model for estimating ratings? Can I use book value of debt as a proxy for market value of debt? What should be in my market value of equity?
A contrary view on betas Margin of Safety.. An alternative to beta? How do you know if a one-time charge or income is truly one time?
Investment Valuation by Aswath Damodaran
One-time Write off? When would you include cash in working capital to compute cash flows? What marginal tax rate do you use when you have a firm that operates in multiple countries with different tax rates? What will happen to value if you ignore acquisitions when estimating capital expenditures? Special Purpose Entities.
Why might analyst estimates of growth deviate from the fundamental growth rate? Can you use historical, analyst and fundamental growth rates in the same valuation?
Can the fundamental growth rate be negative? The inside of earnings growth in the s Evaluating analyst growth estimates Return on Capital, not growth Can I use a growth rate higher than the growth rate of the economy as my stable growth rate if my firm is a well-managed firm or if it has other stellar qualities? When would you use liquidation value instead of terminal value? How do you estimate terminal multiples from fundamentals?
Competitive Advantage Period. Can you value stocks that do not pay dividends with the dividend discount model? How do you allow for stock buybacks in the dividend discount models? How does the personal taxation of dividends affect the value of a share?
The Dividend Discount Model The dividend yield matters Why do firms not pay out their free cashflow to equity as dividends? What is the link between corporate governance and the use of FCFE models? Microsoft faces a call to pay dividends. What is the key difference between the cost of capital and APV approaches? When is it more appropriate to use the APV approach to value firms? Adjusted Present Value with growth and changing cost of capital.
How do you value holdings of private companies? What do you do about minority interests? How is the valuation of executive stock options different from the valuation of other options?