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Introduction to Valuation

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Uploaded by on Aug 20, 2009

Valuation is the process of determining what something is worth. It is arguably the most important, and most difficult thing we do in finance.

This gives an introductory look at valuation from Discounted CashFlow Analysis (DCF) to market multiples (comparables).

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Education

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  • thank youu but we want more videos !

  • good general theory..

  • good stuff

  • this is too simple for valutation. this is not real valuation like buffet does or graham did. it is more complicated

  • Oh wait, You are explaining cash flows:

    PV = Pmt1/ (1+ i) + Pmt2/ (1+ i)^2 + Pmt3/ (1+ i)^3 and so on

    Or use the Cash Flow Function on a calculator

  • PV = FV / (1 + i)^n .. is a much easier way to explain this .. PV = Present Value, FV = Future value, i = interest rate, n = periods. OR Use a financial calculator and it is even easier

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