Investing Basics - Feel free to ask the most basic questions

[dineshssairam]

These are a few Valuation related threads in VP:

The ART of Valuation

I have been meaning to capture the next phase of refinement for our Capital Allocation Framework based on our learnings from 2011 onwards. It’s a tough ask! Several of you have egged me on to try and put together our incremental learnings in a way that is meaningful and useful for the community. Ever since that fateful discussion and consequent starting of the ValuePickr Public Portfolio and Scorecard, we have been sticking our neck out! We made certain choices consciously on the way dropping s…

Spreadsheet Model for Valuation of a Company

There is a lot of discussion about art of valuation and various techniques to be used in valuations on this site. However, there is no tool available where all these techniques and guidelines can be put together to calculate intrinsic value and expected returns. Several investment books teach discounted cashflow model as the logically correct way to value an asset. However, DCF is difficult to use if you do not use correct inputs. DCF is also highly sensitive to growth rates and discount rates …

Numbers and Narratives: A Simple Discounted Cash Flow (DCF) Model for Equity Valuation

I have created a Discounted Cash Flow Excel Model for Valuation of Common Stock. A Stock’s value is nothing but the story behind the stock and the numbers that keep the story grounded in reality. Hence, I have named the model ‘Numbers and Narratives’. The name is also inspired by one of my all-time favorite YouTube videos by Prof. Aswath Damodaran. In fact, the model itself is a spin-off of a larger, more complex Valuation model created by the Professor himself. Do visit his website to access m…

Money and the Myth: A Simple Dividend Discount Model (DDM) for Equity Valuation

Dinesh Sairam here with yet another Excel model (Gasp)! This time, I present to you, “Money and the Myth”, a Dividend Discount Model (DDM). Once again, I must credit Prof. Aswath Damodaran. I can’t thank him enough for teaching the way he does. Go ahead and visit his website or YouTube Channel while we’re at it. If you remember my earlier Valuation thread titled ‘Numbers and Narratives: A Simple Discounted Cash Flow (DCF) Model for Equity Valuation’, I made the following disclaimer: So, this…

If you’d like a complete learning solution, I suggest you take a look at the following:

http://people.stern.nyu.edu/adamodar/New_Home_Page/webcasteqspr19.htm?utm_source=quora&utm_medium=referral

(Prof. Aswath Damodaran’s Spring 2019 Valuation classes at NYU Stern, put up online for everyone to see and use–for FREE)