I wish all the teachers and professors, particularly in India, learn from this Professor how to teach Statistics for Finance!! What each of these just under 25 minutes of videos reveal is really distilled knowledge on the subject! Quality of MBA education will improve dramatically in India. In any case, these videos are excellent revision for exams or for job interviews as well. Thanks a lot, Professor!!
4:22 question sir, isnt the sample you used for standard error is 93 and so it should be the dispersion of the return for 93 years forward and not just 1 year next?
Noticed the same. The standard error is for the mean calculation of a bunch of years (and not for predicting next year). For next year we can say with 67% confidence that the return will be between -8% to +30%.
It's almost become an industry standard to run with a lot of debt. Whether it be to account for a tax strategy or because they have too. Whatever the case I have almost entirely thrown out the Pe ratio.
Professor, thanks for the lecture! If we used E/P ("earnings yield") instead of P/E then we have at least 4 advantages. Negative earnings would also be comparable, it would be easy to sort them all, we wouldn't have to chuck away companies with no earnings or forecast, and those extreme PE numbers would go away. So, why isn't E/P used in real life?
It actually is. Was going to propose the same thing - all manipulations such as taking averages, etc, etc, should be done with E/P. Then if we want P/E we can just flip it in the end.
I wish all the teachers and professors, particularly in India, learn from this Professor how to teach Statistics for Finance!! What each of these just under 25 minutes of videos reveal is really distilled knowledge on the subject! Quality of MBA education will improve dramatically in India. In any case, these videos are excellent revision for exams or for job interviews as well.
Thanks a lot, Professor!!
I'm in love with his art of storytelling with data
Thank you professor. I was so amazed by the cost of capital information and your emphasis on not sweating the small things. Thank you!!
Sir i m in love with ur teaching
On the Financial asset class return from 1928 to 2020 slide it would be nice to see the bar graphs to visualize the data. Thanks for the lecture!
Amazing introduction into critical thinking of data analysis in every lecture🙏
4:22 question sir, isnt the sample you used for standard error is 93 and so it should be the dispersion of the return for 93 years forward and not just 1 year next?
Noticed the same. The standard error is for the mean calculation of a bunch of years (and not for predicting next year). For next year we can say with 67% confidence that the return will be between -8% to +30%.
Almost wonder if you could do an adjusted PE ratio
Professor, can you please post the videos as playlist ? The playlist ( with lectures in order) is not available
It was in a playlist, but the playlist was not directly accessible. It should be now.
You are amazing! Thank you
Thank you very much! Professor, links in post class test doesn't work.
Thank you professor
This is absolutely brilliant
It's almost become an industry standard to run with a lot of debt. Whether it be to account for a tax strategy or because they have too. Whatever the case I have almost entirely thrown out the Pe ratio.
to analyze P/E it would be interesting to use the harmonic mean.
Sir, log of stock returns is normally distributed. So should you not have calculated the STDEV using log returns instead of simple return ?
The links to the data for the test doesn't work any more! :(
Could we consider that PE can be negative (using net loss per share)?
Does anyone know if we have study groups for Prof Damodaran's classes?
where can i find the data?
Professor, thanks for the lecture!
If we used E/P ("earnings yield") instead of P/E then we have at least 4 advantages. Negative earnings would also be comparable, it would be easy to sort them all, we wouldn't have to chuck away companies with no earnings or forecast, and those extreme PE numbers would go away. So, why isn't E/P used in real life?
It actually is. Was going to propose the same thing - all manipulations such as taking averages, etc, etc, should be done with E/P. Then if we want P/E we can just flip it in the end.
I think probability is the most when considering options price targets. Kind of wish we had a spreadsheet😂😉
Speak in hindi plz
LOL