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A new semester begins: Valuation class online
 

Aswath Damodaran's picture
(Gorilla, 579
 
Points)
 on 9/10/12 at 1:00pm
valuation.jpg
If you are a teacher, you measure your life in quarters and semesters. This is my fiftieth semester teaching, and, as in each of the prior forty nine semesters, I could not wait to get started. Coddled as only tenured faculty at a research university can be, I have only one class to teach this semester. The class is "Valuation", and it is about valuing any asset: stocks, businesses, sports teams and collectibles are all fair game. While the class begins with an extended discussion of intrinsic (DCF) valuation , it will extend to cover multiples/comparables and real options. The first class was Wednesday, September 5, and I will teach it every Monday and Wednesday for the next 15 weeks (with a few days off in the middle) from 10.30 to 12 at the Stern School of Business at New York University.

At the start of this year, I argued that universities have used their "monopoly" status in the education business to protect themselves from needed change. I also presented my view that "disruptive" changes were coming, largely because technology has undermined the entrenched competitive advantages that have allowed universities to charge premium prices for often below-average products. I also put my class online, using a company called Coursekit, and a few thousand people enrolled in the class. While life got in the way of completing the class for some of these students, I was gratified by the feedback I got on the class and I did learn from some of my mistakes (though I undoubtedly will make more mistakes soon). Symbolizing how quickly this business is shifting, Coursekit has changed both its look and its name (it is now called Lore), raised more capital and is aiming for bigger and better things. I wish them well, but I have decided to broaden the choices available to those who would like to take my Valuation class this semester. So, if you are interested, here they are:

1. School website: I maintain a website at Stern for the class that includes everything that I do in this class: webcasts of the classes, lecture notes and quizzes/exams. You can find them all by clicking onn the link below:
http://www.stern.nyu.edu/~adamodar/New_Home_Page/webcasteqfall12.htm
The plus is that this is my first stop when I add or update anything to the class and it is the one place where you will be guaranteed to find everything to do with the class. The minus is that I am not a master at web design and the look and it shows: things are sometimes difficult to find and it is short on eye candy.

2. Lore: I will continue to teach this class on Lore, but rather than maintain two separate classes (as I did last semester), I will consolidate the class in one location. Since I will be using Lore to keep track of those who are registered and are taking the class at Stern, you will be auditing the class on Lore, if you choose this option. To join the "audtior" list, click below:
join.lore.com/c2d550c59a7f

Note that you will have all of the access to materials and webcasts of the registered students. For the moment, though, you will be able to read posts and comments but you cannot post: I will work on seeing whether I can change that, to allow you to participate in discussions. The plus is that the site is much more polished than mine will ever be, but the minus is that you have to work within the Lore structure, which may not be to your liking. 

3. Apple iTunes U: As a long time Apple user, I have watched the development of Apple iTunes U with interest. What started as a site with just class videos and no interaction is evolving into something more typical of Apple: beautiful and useful at the same time. The downside, though, is that you need an Apple device to use iTunes U, preferably an iPad. If you do have one, here is what you can do:
Step 1: Go to the Apple App store and download Apple iTunes U. Don't worry. It is free.
Step 2: On your Apple device, open your email and click on the link below

https://itunesu.itunes.apple.com/enroll/HV9-N8D-MPC

Step 3: Apple iTunes U should open up and the class should be on your shelf.
Step 4: You may need to wait until I let you into the site. (I am working on making this a public course but there seem to be some barriers in place...)
The plus is that the site is dazzling in terms of beauty but the minus is that you cannot get to it on your Android or Blackberry device.
4. YouTube:  I am using a site call Symynd to provide access to the class resources to anyone who is interested in valuation. This site, which aims to democratize education, converts the webcasts into YouTube videos and provides access to the material. You can get to the site by going to:
For those of you who have trouble downloading the large lecture webcast files (150 GB and higher) that are offered on the other channels, the YouTube videos work much better, since they are compact. There is a Facebook page for the class, where you can post and respond...
I hope that one of these four channels works for you and that you can come along for the ride. As always, I am interested in finding out not only what works, but what does not. The first session of the class was last Wednesday (September 5) and you have plenty of time to catch up before the next class on Monday. I will post the webcasts on all four channels about an hour after the class ends (between 1 pm and 2 pm, New York Time, every Monday and Wednesday).
Professor of Finance at Stern Damodaran's Blog -- See my other wso posts
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Comments

captainkoolaid's picture

thanks for this

HF
(Gorilla, 599
 
Points)
 on 9/10/12 at 3:09pm

thanks for this

fbk4sure's picture

cant believe this is for

(Chimp, 2
 
Points)
 on 9/10/12 at 3:18pm

cant believe this is for real.... Thanks. Interested in Finance so this is good.

Ichan's picture

Thank you Professor. I am

O
(Baboon, 151
 
Points)
 on 9/10/12 at 4:14pm

Thank you Professor. I am really grateful to you.

It's not about the money. It's about the game between people.

jack_donaghy's picture

I sincerely appreciate your

IB
 
Points)
 on 9/10/12 at 4:49pm

I sincerely appreciate your efforts to bring your teachings to the rest of us. I have personally used your Lore lectures in assisting my interns this past summer. Thank you!

F. Ro Jo's picture

damo da man

 
Points)
 on 9/10/12 at 4:56pm

damo da man

NYU's picture

Can you clear up a debate Im

PE
(Baboon, 160
 
Points)
 on 9/10/12 at 5:20pm

Can you clear up a debate Im having here Professor?

If you use forward EBITDA and a forward multiple to build your EV, do you then subtract the current net debt or the forward (projected) net debt to come to current equity value? Thanks.

Ichan's picture

EV=MVE+debt+preferred

O
(Baboon, 151
 
Points)
 on 9/10/12 at 8:24pm

EV=MVE+debt+preferred stock+minority interest-cash

Hope, this helps

It's not about the money. It's about the game between people.

suchislife's picture

NYU: Can you clear up a

PE
 
Points)
 on 9/10/12 at 9:41pm
NYU:

Can you clear up a debate Im having here Professor?

If you use forward EBITDA and a forward multiple to build your EV, do you then subtract the current net debt or the forward (projected) net debt to come to current equity value? Thanks.

I believe you should use the current debt as you are using a forward multiple and are thus getting today's value of the future earnings, not the future value. This should be correct, if its not, please correct me!

SIL

Vin917's picture

This is great, thank you

AM
(Monkey, 45
 
Points)
 on 9/11/12 at 12:11am

This is great, thank you Professor!

Jamin's picture

Thank you. Also Lore seems

(Monkey, 56
 
Points)
 on 9/11/12 at 4:32pm

Thank you.

Also Lore seems like an interesting concept.

mmmultani's picture

Dear Aswath, Please approve

(Chimp, 1
 
Points)
 on 9/12/12 at 1:36am

Dear Aswath,

Please approve iTunes U users who have enrolled for the course.

Thanks

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