Session 9 (Val MBA): FCFE and Growth Rates

Aswath Damodaran
Aswath Damodaran
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Published 2024-02-28
In the session, which occurred after the quiz, we started on our assessment of growth rates, starting with historical growth rates, before looking at analysts estimates of growth and why they do not carry more predictive power (given that analysts often are immersed in company-specific knowledge and have access to management). Next week, we will look at tying growth to two fundamental questions: (1) how much companies reinvest and (2) how well.
Slides: pages.stern.nyu.edu/~adamodar/podcasts/valspr24/se…
No start of the class or post-class test!
All Comments (5)
  • @sirzatyenen3200
    This is how the CFA should be taught, excellent transition from FCFE and levered betas to Modigliani-Miller, thank you so much for the series, Professor.
  • @subhamchowdhury6296
    the justification for using a levered beta instead of a regression was mind blowing sir. thank you so much for valuable lecture
  • @booksgeek8649
    Hello sir, thank you. Please I have a question, for bank valuation, we use cost of equity instead of WACC, but if we want to valuate a subsidiary operating in another country we should add another layer of risk, shall we add the differential of cds or inflation ( between two countries parent and subsidiaries) to the basic cost of equity or should we use another thing . Thank you in advance
  • @akshatsharma..
    i have a question for anyone who could help what is the difference between the MBA valuation and undergrad valuation ??