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Valuation MBA Spr20 - Shared screen with speaker view
Gabriel Rives-Corbett
15:42
hear you
Julieta Dapero
15:43
yes
Rami Bidshahri
28:44
Why is the revenue growth rate flat rather than a distribution?
Rick Tarr
29:03
that's a uniform distribution, i believe
Perry Singh
29:09
I think it is: 5-25 %
Darshan Kesaria
29:37
Yeah its equal possibility for the range of outcomes
Alex Soekinto
31:31
When building your Mote Carlo simulation, do you have to consider how the stories tied together (i.e. if you assume higher revenue growth, you probably need to invest more in capital)? Or we could just do this randomly due to law of large number?
Shasanka Pradhan
32:36
Did you choose the type of distribution at the bottom left corner or was it generated by the model? If you chose it, how did you choose it?
Darshan Kesaria
33:15
How can we work out the correlation between the inputs
Ayla Jiang
33:42
Do you do this kind of simulation for every valuation you produce?
Gavin James Parker
35:55
spam
Oliver Boyle
36:04
agreed
Oliver Boyle
44:00
has this reduced over the years?
Jose Sosa
44:13
to that point, how can we be certain Hormel (or any company) has good options to reinvest more capital?
Julian Stern
45:40
You no longer save on interest expense
Jose Sosa
45:42
bankruptcy risk?
Eric Pittel
45:44
bankruptcy chances
Philip Zhang
45:46
ratings down
Darshan Kesaria
45:58
Operating Losss
Jonathan James Hammond
46:23
So for a company like Heinz where 3G advocated cost savings, would you have recommended divestures of unprofitable business segments versus shrinking margins on existing business and/or focusing on growth?
Keenan Stow Weaving
55:03
what is good mgmt strategy for declining companies to max TSR - divest NPV-negative businesses, focus on core, distribute high dividends, ride wave until company dies?
Keenan Stow Weaving
55:24
sure thing
Julieta Dapero
55:45
how do you come up with the liquidation value? is it an estimate of salvage value of remaining assets?
Alex Soekinto
55:48
can you elaborate on your reinvestment assumptions?
Oliver Boyle
55:50
what about a company trading for less than tangible book value, if the assets are real
Julian Stern
01:00:08
doesn't a credit spread on a credit-risky bond reflect the possibility of default (truncation)? why wouldn't we be able to apply the concept of truncation to the cash flows from a firm rather than a debt instrument?
Adam Kugelman
01:00:44
Should investment grade companies also come with a default risk?
Benjamin Fortunato
01:00:59
I lost audio
Alex Soekinto
01:01:01
same
Jonghwan Kim
01:01:02
lost audio too
Shasanka Pradhan
01:01:03
Same
Sami Husain Mohamed Husain Al Marzooqi
01:01:06
me too
Jonghwan Kim
01:01:08
could repeat that?
Chad Eatinger
01:01:10
same
John Strickland Gresham
01:01:10
I think we're losing you
Chen Ling
01:01:11
same here
Alex Kestner
01:01:15
+1
Benjamin Fortunato
01:01:17
can you repeat from the beginning about SAnds?
Sami Husain Mohamed Husain Al Marzooqi
01:01:19
Can you please repeat the last 30 seconds
Darshan Kesaria
01:01:25
Yeah no audio
Oliver Boyle
01:01:28
losing you
Sami Husain Mohamed Husain Al Marzooqi
01:01:30
still no audio
Rami Bidshahri
01:01:31
**We need to go back 1 min
Darshan Kesaria
01:05:03
What happens if you continue to expect the growth of the company to go down
Jose Sosa
01:07:15
but couldn't you argue that if they made it past 2010-11, their chances of surviving were pretty certain?
Hannah Rose S
01:10:43
What if the market is miscalling the annual probability of default?
Rob Gosselin
01:11:12
Have you accounted for chance of gov't bailout in chances of default in valuations?
Jose Sosa
01:11:40
forgivable debt
Hannah Rose S
01:13:21
What if the bond market is wrong, now that you’re basing it off the bond value? to calculate the probability of default
Flavia Andreatta F. Araujo Sounis
01:19:02
how would it change when the gov owns part of the company?
Sam Greene
01:19:22
can't go under...
Sameer Kadhikhaye
01:19:22
subsidy
Sameer Kadhikhaye
01:19:36
Cost of subsidy
Andres Sanchez Badia
01:19:38
tax
Keenan Stow Weaving
01:19:40
oversight
Keenan Stow Weaving
01:19:42
publicity
Sami Husain Mohamed Husain Al Marzooqi
01:20:36
What % do you consider the government owns a piece?
Oliver Boyle
01:24:01
can terminal g be driven by gdp growth?
Rob Gosselin
01:29:05
RoC < CoC
Pascal Schaefer
01:29:56
Grow better
Rami Bidshahri
01:29:58
take on higher NPV projects
Jessika Larsson
01:30:02
Steady profitable growth
Julieta Dapero
01:34:32
diversification?
Sami Husain Mohamed Husain Al Marzooqi
01:34:54
Source of revenue?
Alex Baskin
01:36:38
CapIQ Credit Health Panel has a “Market Signal Probability of Default.” Can this serve as a probability of distress?
Jessika Larsson
01:36:40
Is there a packet we can order from the bookstore for the 2nd and 3rd set of lecture notes? Or can we only download it from the class website?