Thanks for give us the opportunity to learn for free,professor.I have read your book (Business and Numbers)and i really liked it. I am really happy now that I found this interesting lectures. Greetings from Italy .
The hard part with advertisement is to calculate the depreciation, sure you spent 100 millions in adds, you can say brand as an assets now is 100 millions more valuable, but it has a lot of depreciation and the depreciation for that is really hard to calculate, the CEO said something improper in twitter suddenly your brand value looses 250 million dollars. That's just a quick thought, thanks for uploading your courses!!
@@SuperLickshit Embraer derived 97 % revenue from the USA and 3 % from brazil u can check slide 56 of the slide packet or refer CRP calculation lecture I don't think it was related to the source of revenue so it must be something else ,which i haven't figure out
Most of Embraer's revenue is from USA not Brazil So he treated Embraer as the other large Brazilian companies. Because of that Prof. used other large Brazilian companies bond spreads which is 2/3 of Brazil country default spread.
Hi Professor Damodaran - for those companies that have now switched to capitalizing operating leases, it wouldn't make sense for us to adjust by adding back operating lease cost and deducting depreciation right? It should in theory be reflected in those operating income. So to calculate the ROIC, we can add the operating lease liabilities from Balance Sheet (OR can try to do PV conversion ourselves to compare as you noted) to Invested Capital, but the operating income used to calculate NOPLAT should already adjusted.
Professor aren't while converting dollar cost of capital to brazilian cost of capital by using the difference in inflation aren't we assuming that the nominal growth is pretty much the same in US and in Brazil? If we aren't assuming this shouldn't we add the growth difference effect in the equation Because I remember you saying that rates are mostly function of inflation and real growth.
Hello everyone, I am really a big fan of Aswath Damodar Sir's work and thats why have created this telegram group by the name @aswathdamodaran. Disclaimer: This is not a group that has been created by Aswath Sir himself, do not blame it on him. This is a fan club channel for all the crazy Aswath Sir's fan. This channel reposts content placed by professor Aswath Damodaran at his RUclips Channel and other platforms that he posts on, for the broader audience who prefer Telegram as communication platform. This channel is also a discussion platform for like minded people who are big fans of Aswath Sir's work. A big thanks from India to our fellow Indian finance profesor for such a great work. 💙 Regards, Dhruvin Jain Valuation Enthusiast.
Hi, first & foremost, thank you very much for posting these. I had a question, my country allows the deduction of a fictional interest payment on your own capital employed. So if I have $1M in so-called "capital-at-risk", I can deduct roughly 1%, a.k.a. $10K from my taxable base. Does this get processed when calculating the cost of capital, or does it just get added to the cash flow like depreciation? For some companies, e.g. ArcelorMittal/Hewlett-Packard/AB Inbev/Bayer, this amounted to hundreds of millions, so it's very much a non-negligible amount.
Sounds like Brazil. When you get a fictional interest payment, it is really a tax deduction for equity earnings, effectively lowering your cost of equity. It will probably be easier to show this in your earnings and cashflows, than in your discount rate.
@@AswathDamodaranonValuation Thanks for your response! As it has to be a separate item on the balance sheet, it should indeed be much easier to just add it to cashflows, but as it's (somewhat) based on the rate of 10yr government bonds, i.e. the rates from July/August/September two years prior, I thought I'd ask. I'm from Belgium, btw.
*Timestamps*
7:00 Start of the class test
18:40 Cost of Capital (continued)
58:35 Cash Flows
It was Patrik's mic :D
Thanks prof for making these valuable knowledge available to public for free.
Thanks for give us the opportunity to learn for free,professor.I have read your book (Business and Numbers)and i really liked it. I am really happy now that I found this interesting lectures. Greetings from Italy .
Amazing lecture! The formula on page 112 is missing "- 1"
Aap to prabhu hai valuation ke🙏
The hard part with advertisement is to calculate the depreciation, sure you spent 100 millions in adds, you can say brand as an assets now is 100 millions more valuable, but it has a lot of depreciation and the depreciation for that is really hard to calculate, the CEO said something improper in twitter suddenly your brand value looses 250 million dollars. That's just a quick thought, thanks for uploading your courses!!
Thanks Aswathb Sir, really nice content. just a quick question. At 32:08, where did 2/3 came from ? Was it arbitrary or based on some calculations?
It came from the source of revenue of Embraer operations
@@SuperLickshit Embraer derived 97 % revenue from the USA and 3 % from brazil
u can check slide 56 of the slide packet or refer CRP calculation lecture
I don't think it was related to the source of revenue
so it must be something else ,which i haven't figure out
Most of Embraer's revenue is from USA not Brazil So he treated Embraer as the other large Brazilian companies.
Because of that Prof. used other large Brazilian companies bond spreads which is 2/3 of Brazil country default spread.
Hi ! where i can find the quiz and test of the entire course??, the exam also, thanks !
Hi Professor Damodaran - for those companies that have now switched to capitalizing operating leases, it wouldn't make sense for us to adjust by adding back operating lease cost and deducting depreciation right? It should in theory be reflected in those operating income.
So to calculate the ROIC, we can add the operating lease liabilities from Balance Sheet (OR can try to do PV conversion ourselves to compare as you noted) to Invested Capital, but the operating income used to calculate NOPLAT should already adjusted.
Professor, in question 3 of the post class test could you please explain how did you get the Unamortised and Amortisation values?
Thank you professor
Professor aren't while converting dollar cost of capital to brazilian cost of capital by using the difference in inflation aren't we assuming that the nominal growth is pretty much the same in US and in Brazil? If we aren't assuming this shouldn't we add the growth difference effect in the equation Because I remember you saying that rates are mostly function of inflation and real growth.
Hello everyone,
I am really a big fan of Aswath Damodar Sir's work and thats why have created this telegram group by the name @aswathdamodaran.
Disclaimer: This is not a group that has been created by Aswath Sir himself, do not blame it on him. This is a fan club channel for all the crazy Aswath Sir's fan.
This channel reposts content placed by professor Aswath Damodaran at his RUclips Channel and other platforms that he posts on, for the broader audience who prefer Telegram as communication platform.
This channel is also a discussion platform for like minded people who are big fans of Aswath Sir's work.
A big thanks from India to our fellow Indian finance profesor for such a great work. 💙
Regards,
Dhruvin Jain
Valuation Enthusiast.
What about a CRAMS firm where R&D is the only capex they do???
where can I find your heineken valuation?
in aswath damodaran website
@@maheshamujuru1288 thank u
Hi, first & foremost, thank you very much for posting these.
I had a question, my country allows the deduction of a fictional interest payment on your own capital employed. So if I have $1M in so-called "capital-at-risk", I can deduct roughly 1%, a.k.a. $10K from my taxable base.
Does this get processed when calculating the cost of capital, or does it just get added to the cash flow like depreciation?
For some companies, e.g. ArcelorMittal/Hewlett-Packard/AB Inbev/Bayer, this amounted to hundreds of millions, so it's very much a non-negligible amount.
Sounds like Brazil. When you get a fictional interest payment, it is really a tax deduction for equity earnings, effectively lowering your cost of equity. It will probably be easier to show this in your earnings and cashflows, than in your discount rate.
@@AswathDamodaranonValuation Thanks for your response!
As it has to be a separate item on the balance sheet, it should indeed be much easier to just add it to cashflows, but as it's (somewhat) based on the rate of 10yr government bonds, i.e. the rates from July/August/September two years prior, I thought I'd ask.
I'm from Belgium, btw.
Can anyone help me with the lease present value, Please? I can't seem to find the same value as the slides.
oh nvm I got it, silly me 😅
The fact that you don’t want them to say “Wack” is Wack!
WACC spells "Wack"