Valuation: Multiples & DCF

The two ways to value a stock: relative (P/E, EV/EBITDA, EV/Sales vs peers) and intrinsic (discounted free cash flow with WACC and terminal value), plus enterprise vs equity value, sensitivity tables, and Damodaran's 'story and numbers'.

35 min · 5 steps · videoJump to quiz ↓

Session 3: Intrinsic Valuation 101 - First Steps Aswath Damodaran · 80 min

Open in YouTube

Step 1 of 5 · Overview35 min read ·

Key idea

Prereqs: Reading an income statement; Balance sheet & cash flow. Next: Case study: Robinhood. Sources: Aswath Damodaran, *The Little Book of Valuation* and NYU Stern lectures; McKinsey, *Valuation*.

Next: 1. Enterprise vs equity value

Valuation: Multiples & DCF

Watch next

The Option Greeks and Hedging - Revision Lecture

Ses 4: Present Value Relations III & Fixed-Income Securities I

Ses 12: Options III & Risk and Return I

Ses 13: Risk and Return II & Portfolio Theory I

Session 18: Relative Valuation - Analysis and Application

Session 6: Cost of Debt and Capital

Discounted Cash Flow method (DCF)

Private Equity: Leveraged Buyouts Explained (Analyze Deals Like a Pro)

Session 24: Acquisition Valuation

5. Present Value Prices and the Real Rate of Interest