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Valuation MBA Spr20 - Shared screen with speaker view
Nathaniel Y Tracer
17:20
0
Julian Stern
32:39
Assumes that they can continue to finance themselves
Nathaniel Y Tracer
32:43
borrow
Jessika Larsson
32:43
Raise capital
Jose Sosa
34:33
bankruptcy
Jessika Larsson
34:33
Bust
Julian Stern
34:34
You have to sell assets
Sanjana Upadhyay
36:05
reduces
Gavin James Parker
36:07
It should go down
Nathaniel Y Tracer
36:07
go down
Philip Zhang
36:48
what does "AT" mean
Perry Singh
36:55
After tax
Eric Pittel
36:56
After Tax
Sameer Kadhikhaye
37:09
NOL
Philip Zhang
37:09
negative profit
Jessika Larsson
37:12
Negative profit
Oliver Boyle
37:13
NOL
Perry Singh
37:13
no profites to right against
Adam Kugelman
38:03
To bring the operating margin to its target 10%, do we use a straight line approach?
Jonathan James Hammond
43:35
The risk free rate was 6% back then?
Rami Bidshahri
43:48
Yeah
Perry Singh
43:57
The bank rate in India was 18%
Benjamin Fortunato
44:23
Are the negative FCF carried over to the next year? Don't these need to be funded with debt on the balance sheet or equity ?
Chad Eatinger
46:50
unlimited downside on Shorts
Rob Gosselin
46:54
unlimited losses
Jose Sosa
46:54
momentum
Sam Greene
46:58
uncertainty with the future of the business?
Rami Bidshahri
47:05
The market can remain irrational for longer than you can remain liquid
Benjamin Fortunato
47:07
The market has to correct itself
Zhaoyi Gao
47:28
too expensive to short?
Chad Eatinger
47:29
cost of borrowing
Sam Greene
47:50
WOW
Jose Sosa
49:03
can you argue that projecting only 10 years for a high growth company is too short of a time frame? it seems in this case the terminal value didn't correctly capture the value of future growth
Aj Marino
55:59
Is it standard practice to guesstimate revenue growth for young companies? Or is there a formula somewhere?
Julian Stern
56:20
You implicitly didn't account for revenue growth in the comparable firm (#5) over 10 years. Is there a particular reason?
Shasanka Pradhan
57:31
Are you saying you don't "value" young companies but you "price" them because young companies don't generated positive cash flows?
Perry Singh
59:38
q
Jonathan James Hammond
01:00:03
If you are looking at a company like Pinterest which doesn't have a defined comp set, how are you determining the comp set for your bottom up beta and future revenue in year 10? Its peer companies may not be stable and not have stable revenue.
Ryan Barbaccia
01:03:27
google
Nathaniel Y Tracer
01:03:31
fb
Gavin James Parker
01:03:31
facebook
Aj Marino
01:03:32
Facebook and google
Jessika Larsson
01:03:33
fb
Gavin James Parker
01:03:41
no
Aj Marino
01:04:18
Pinterest is also similar to women’s focused magazines
Sanjana Upadhyay
01:06:54
If you had to value Amazon today, would you use a sum of the parts approach given the different segments
Shasanka Pradhan
01:10:37
Did you capitalize operating leases when you arrived at 3x Sales/Capital ratio for retailers?
Oliver Boyle
01:15:17
conversely, if there are buybacks, then use FCFE?
Aj Marino
01:17:12
Something I haven’t been able to figure out is how you calculate ROIC… what do you count within invested capital?
Zhaoyi Gao
01:20:10
nth
Jonghwan Kim
01:20:12
zero
Sameer Kadhikhaye
01:20:12
Is it 0?
Flavia Andreatta F. Araujo Sounis
01:20:14
0
Chen Ling
01:20:16
0
Jessika Larsson
01:20:35
Are you not factoring in the probability of failure by having the higher cost of capital during the first years of the DCF?
Benjamin Fortunato
01:22:45
How many of these young companies were acquired? Is this probability taken into account that some companies fail and some "fail" due to consolidation.
Zhaoyi Gao
01:24:57
The current risk free rate is 0.85%, can we assume using this for steady state growth rate? Or maybe it is too low?
Justin Proetto
01:33:48
do you ever laying in capital gains vs. marginal tax rate to your valuation based on how long you think it will take the market to correct?