Valuation Inferno: Dante Meets DCF – Avoiding Common Mistakes in Valuation Analysis

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Regional and Country Conferences
2011 India Investment Management Conference
Source: CFA Institute

1 hr 52 min, video webcast, recorded on 7 January 2011

Aswath Damodaran is professor of finance and David Margolis Teaching Fellow at the Leonard N. Stern School of Business at New York University. He has authored articles in such publications as the Journal of Financial and Quantitative Analysis and the Journal of Finance. Additionally, Professor Damodaran is the author of a number of books and is the co-editor of the book Investment Management with Peter Bernstein. He is a five-time recipient of the Stern School of Business Excellence in Teaching Award (awarded by the graduating class) and was the youngest winner of the University-wide Distinguished Teaching Award in 1990. Professor Damodaran holds MBA and PhD degrees from the University of California at Los Angeles.

This information is accurate as of the date of recording.

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Summary

Aswath Damodaran discusses input traps and inconsistencies of discounted cash flow (DCF) valuation and describes the 10 most common mistakes in DCF valuations and assesses their relative severity. He also discusses basic practices in valuation such as whether debt ratios should change over time and how to calculate terminal value.

Topics
Equity Investments
    :
  • Fundamental Analysis (Sector, Industry, Company) and the Valuation of Individual Equity Securities
Credits · About the CE Program
2 CE (including 0 SER) Manage CE Credits

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