- published: 17 Feb 2015
- views: 176795
The tools and practice of valuation is intimidating to most laymen, who assume that they do not have the skills and the capability to value companies. In this talk, I propose to lay out four simple propositions about valuation. The first is that valuation is not an extension of accounting, insofar as it is not about recording the past but forecasting the future. The second is that valuation is not just modeling, where people put numbers into Excel spreadsheets and pump out values. A good valuation requires a narrative that binds the numbers together. The third is that valuing an asset or business is very different from pricing that asset or business, a difference that is often blurred in practice. The fourth is that luck plays a disproportionate role in whether you make money off your valu...
Financial statements are increasingly filled with fluff and knowing how to separate what matters from what does not is critical. In this webcast, I look at the P&G 10K, with the intent of extracting the information that matters. Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/PG/Reading10KPG.pdf P&G 10K: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/PG/ProcterGamble10K.pdf P&G Spreadsheet: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/PG/P&Gvaluationfixed.xls
A webcast on how to get data/information on companies so as to assess their corporate finance health & value.
The terminal value in a discounted cash flow valuation is the elephant in the room. In this webcast, I look at simple rules to keep it in check.
The key to getting an updated value is working with updated numbers. In this webcast, I look at how use an annual and quarterly report to construct a twelve-month earnings number. I use Apple's 10K from 2012 and a 10Q from 2013 to illustrate the process: Apple 10K: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/TTM/Apple10K.pdf Apple 10Q: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/TTM/Apple10Q.pdf Spreadsheet: http://www.stern.nyu.edu/~adamodar/pc/blog/AppleTTM.xls
In this webcast, I look at the process of valuing employee options and incorporating that value into the value of equity per share. I use Cisco to illustrate. Cisco 10K: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/webcasts/EmployeeOptions/cisco10K.pdf Cisco Option spreadsheet: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/webcasts/EmployeeOptions/ciscooptions.xls
Ken Boyd is the Co-Founder of Accountinged.com, and owns St. Louis Test Preparation (accountingaccidentally.com). He provides writing, video and speaking services on accounting and finance topics. Ken is the author of Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies. As a former CPA, Auditor, Tax Preparer and College Professor, Boyd brings a wealth of business experience to education.
GuruFocus team will be demonstrating the most widely used methods to value common stocks. These include the discount cash flow method, earnings yield, Yacktman rate of return, industry comparisons and others. GuruFocus screeners and valuation tools will give you tremendous edge in your research and analysis. Visit http://www.gurufocus.com/
The return on equity and invested capital are key to estimating growth and value at companies, but they are accounting numbers and need tender care and attention. Walmart (2013): http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/webcasts/ROIC/walmart10K.pdf Walmart (2012): http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/webcasts/ROIC/walmart10Klastyear.pdf Spreadsheet:http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/webcasts/ROIC/walmartreturncalculator.xls
Look at how to go from raw data to analyzing and assessing multiples.
Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. Just for instance I possessed a company comprising of a neighborhood store. To put together that center, I invested $1,000 one year ago on apparatus along with other assets. The equipment in addition to other assets have depreciated by 10% in a single year, so now they're valued at only $900 inside the accounting books. In case I was going to make an effort to offer you this company, what amount would an accountant value it? Relatively easy! $900. The cost of the whole set of assets (less liabilities, if any) can give accountants the "book value" of a typical organization, and such is systematically how accountants observe the worth of an enterprise or company. (We employ the use of the word "book" because th...
Looks at the contrast between three widely used measures of market value and how to compute each.
R&D is really capital expenditures (for technology and pharmaceutical companies) but accountants treat it as operating expenses. In this webcast, I look at the process of capitalizing R&D and how it affects earnings and reinvestment rates. I use Microsoft to illustrate the process. Microsoft 10K (2012): http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/webcasts/R&D/Microsoft10K.docx Microsoft 10K (2011): http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/webcasts/R&D/Microsoftlastyear10K.docx Spreadsheet: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/webcasts/R&D/MicrosoftR&D.xls
A webcast on how to estimate the risk free rate in any currency.
In this webcast, I look at applying option pricing models to value the option to delay and how that can be extended to value patents.