This course is about valuation of stocks and businesses. The underlying premise of this course is that any asset can be valued. Real life valuations of companies are an inherent part of the content. By the end of this course, I would like you to be able to
• Apply discounted cash flow analysis to find an intrinsic value of an asset (value of an asset is the present value of the expected cashflows)
• Define, describe, analyze and apply any multiple (PE, Value/EBITDA, Price/Book Value...) to find the relative value of asset (relative value of an asset is what others are willing to pay for it or something like it)
• Value any publicly traded firm, small or large, domestic or foreign, healthy or troubled
• Value any private business for owners or investors (private equity, venture capital, IPO)
• Separate fact from fiction, sense from nonsense and real analysis from sales pitch in equity research reports, valuations and general discourse
Haran Segram was a Columbia Business School faculty member from 2012 to 2016.