đź‘‹ Meet Zolid AI
Here to support your company's exit journey — Zolid AI can answer questions and provide insights. Free for now, with fair usage limits.
Your conversations are not shared with others. We may review them to improve Zolid AI.
Zolid AI may provide inaccurate info, so verify responses.
No quick summary yet. Be the first to add a quick summary.
Add quick summaryNo information listed yet. Be the first to add who benefits from this content.
Suggest who benefitsValuation Modeling: Excel as a tool
No detailed summary yet. Suggest a summary to help the community.
Suggest summaryNo questions listed yet. Be the first to add a question for this topic.
Suggest questionExcel is a powerful tool, but in our zeal to test out its many powers, we often overuse, and spend far too much time thinking about modeling and too little about business and valuation first principles. I do have a base valuation spreadsheet that I use to value almost every non-financial service company, and over time I have added some bells and whistles. That said, at its core it remains a simple spreadsheet, with no macros or Excel functions. In this session, I provide a link to the spreadsheet and how to use in valuing company, going input cell by input cell. (I am sorry if my voice sounds ragged, but I have a scratchy throat (nope.. Not COVID) and just got off a long flight.) Spreadsheet:
About Aswath Damodaran
In this session, we started by looking at the challenges of valuing private-to-private transactions, where the buyer of a private business is undiversified and cares deeply about illiquidity, and how the values are depressed as a consequence. We then drew a contrast to the same company being valued by a public company, and argued that this should lead to private businesses increasingly become parts of public companies or going public themselves. In the final section of the class, we looked at valuing/pricing IPOs, and how to deal with offer proceeds from the IPO and the IPO process itself. Start of the class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/pvtcotest.pdf Slides: https://pages.stern.nyu.edu/~adamodar/podcasts/valUGspr23/session23slides.pdf Post class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session23Ftest.pdf Post class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session23Fsoln.pdf