NYU Stern
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Valuation

Date
July 20 - 22, 2015
Location
NYU Campus, Greenwich Village
Cost
$5,400 (Accommodation not included)
Other Dates

There are as many models for valuing stocks and businesses as there are analysts doing valuations. The differences between these models are often emphasized by their users, and the common elements are often ignored. The objective of this program is to provide the fundamentals of the different valuation approaches, an understanding of the limitations of each approach and examples of each of the applications. The program will address discounted cash flow valuation and the estimation issues that arise when information is imprecise or unavailable, value enhancement through the prism of discounted cash flow models, and contrast techniques. It will also delve into other valuation approaches, such as the use of multiples and comparables in relative valuation, and the use of option pricing to value certain types of stocks and businesses.

Program Benefits:

During this program participants will:

  • Utilize discounted cash flow models to value any type of firm in any market
  • Value a firm using multiples and comparable firms
  • Analyze and critique the use of multiples in valuation
  • Develop the tools to value "problem" firms, such as financially troubled firms and start-up firms
  • Estimate the effect restructuring a firm has on value
          

This program is eligible for Continuing Professional Education Credits (CPE).  Please contact the NYU Stern Executive Education office for more information.

 *Please note that the program is subject to be cancelled under unforeseeable circumstances.

Program Faculty

Aswath Damodaran

Aswath Damodaran is professor of finance at NYU Stern School of Business. Professor Damodaran's contributions to the field of finance have been recognized many times over. He has been the recipient of Giblin, Glucksman, and Heyman Fellowships, a David Margolis Teaching Excellence Fellowship, and the Richard L. Rosenthal Award for Innovation in Investment Management and Corporate Finance.

In addition to myriad publications in academic journals, Professor Damodaran is the author of several highly-regarded and widely-used academic texts on Valuation, Corporate Finance, and Investment Management. Read his full bio


Program Participants


Who Should Attend:

  • Equity research analysts who are interested in examining alternative valuation approaches
  • Corporate financial officers who want to understand the details of valuation for planned acquisitions or to gain value enhancement strategies for their firms
  • Analysts involved in mergers and acquisitions who seek to acquire a wider repertoire of valuation skills
  • Portfolio managers who are interested in the effects of corporate restructuring on firm value, and the implications for portfolio management
     

Participant Testimonials:

"Attending Aswath Damodaran's Valuation program was an amazing experience.  With in-depth analysis and relevant applications, it provided a fully-integrated, crystal-clear understanding of the interplay among market forces, accounting, finance and valuation principles.  The insights from this program will be long term assets in my current role and in creating new opportunities within my company."

- Felipe Botero, Vice President, MetLife

Program Agenda
Day One Day Two

Session 1

The Discounted Cash Flow Model

Session 2

Discounted Cash Flow Valuation


Networking Reception


Session 3

Discounted Cash Flow Valuation (cont.)

Session 4

Loose Ends in Valuation

Day Three

Session 5

The Allure of Relative Valuation

Session 6

The Real Options Story

 

Program Session Details

Day 1


Session 1

The Discounted Cash Flow Model

  • Setting up the model


Session 2
Discounted Cash Flow Valuation

  • The big picture of discounted cash flow (DCF) valuation
  • Valuation examples
  • The discount rate
  • Risk premiums and betas
  • The cost of debt
  • Estimating cash flows


Networking Reception



Day 2


Session 3

Discounted Cash Flow Valuation (cont.)

  • Estimating growth rates
  • Estimating growth patterns
  • The terminal value
  • Closing thoughts on DCF valuation

Session 4
Loose Ends in Valuation

  • Cash, cross holdings and other assets
  • The value of control, synergy and transparency
  • The liquidity discount
  • Employee stock options
     

Day 3


Session 5

The Allure of Relative Valuation

  • Categorizing multiples
  • The four steps in analyzing multiples
  • Applying multiples in valuation
  • Finding comparable firms
  • Controlling for differences
  • Picking the right multiple


Session 6
The Real Options Story

  • The option to delay (and value patents and natural resource companies)
  • The option to abadon
  • The option to extend
  • Equity in troubled firms as options

Program Conclusion