Session 23: Private Company Valuation

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: pages.stern.nyu.edu/~adamodar...
Slides: pages.stern.nyu.edu/~adamodar...
Post class test: pages.stern.nyu.edu/~adamodar...
Post class test: pages.stern.nyu.edu/~adamodar...

Пікірлер: 9

  • @cdossantosr
    @cdossantosr Жыл бұрын

    Thank you, Professor. Regarding the best potential buyer, my reasoning for the publicly traded company to pay a higher price is that they may see the transaction as a shareholder money transaction and therefore it is easier to use other people's money than their own (endowment effect). I also understand about the lower discount rate! If anyone has any comments on the psychological reasoning, I'd appreciate it :)

  • @hectordehoyos3634
    @hectordehoyos36343 ай бұрын

    Among the different business classifications, the real estate business is among the least risky. We also have different types of real estate investments, such as: Rental of Houses, Apartments, Commercial premises, location where the property is located, etc... The growth potential of the area also depends, because the percentage of vacancy in the area rent can change. My experience has told me that the rent of commercial premises are the most profitable for each unit of monetary invested, while small houses, aimed at a low economic level, are the least profitable in general.

  • @bacvera89
    @bacvera89 Жыл бұрын

    At what rate should we discount the cash flows of a Real Estate Property ? Should it be the financing rate ?

  • @thewarrior8074

    @thewarrior8074

    Жыл бұрын

    I am preparing for cat Just curious to know where can we use this kind of knowledge? Is it helpful in small business or something like that

  • @vaibhavrita2060
    @vaibhavrita2060 Жыл бұрын

    Sir can you help us understand and analyse C.E Info tech (MapmyIndia) in comparison with google maps and (mapmyindia's) moat due to geopolitical defence safety and geospatial for goverment of India ? P.s. Long time follower and Big fan of you're methods of investing and analyzing :) Thank you in advance

  • @robertobrien6536
    @robertobrien6536 Жыл бұрын

    Thanks !

  • @debendrasingh549
    @debendrasingh549 Жыл бұрын

    Sir please make video in hindi

  • @SahajPS

    @SahajPS

    Жыл бұрын

    He is from chennai. I don't think he knows hindi. And these videos are lecture videos of NYU stern

  • @0Fallen0

    @0Fallen0

    7 ай бұрын

    Maybe learn english before learning finance because you're not gonna get far in your career in finance without english. And if you know it but not well, improve it before anything.