Thanks Professor! When I studied valuation in business school there was no mention of key people valuation. I would argue that this is a highly impacting variable so there is a clear need for a theoretical framework to value their contribution.
Conclusion: There are many canards about intrinsic valuation that are in wide circulation, and one is that intrinsic valuations do not reflect the value of people in a company. That is not true, since intrinsic valuations, done right, should incorporate the value of a key person or people in a business, reflecting that value in cash flows, growth or risk inputs. That said, intrinsic value is built, not on nostalgia or emotion, but on the cold realities that key people can sometimes destroy value, that a key person in a company can go from being a value creator to a value destroyer over time and that key people, in particular, and human capital, in general, will matter less in some companies (more mature, manufacturing and with long-standing competitive advantages) than in other companies (younger, service-oriented and with transitory and changing moats.
Thanks Prof. D. I have a request for you to please lay down the methodology of valuing companies like OnlyFans. Not trying to be frivolous here at all. I strongly believe that as technology, particularly with the gap between AI-science and engineering reduces, a lot of high-cost multiple-specialised businesses are going to get merged into generic 2-3 member small companies, all managed and distributed by a platform. These can then defy the advertising/pay-parity issues (eg: director making more out of a movie than the actor in case of OF etc). Identifying the risks, potential of growth etc embedded in a valuation framework would be a great learning for us. Looking forward to more learning from you. Happy Holidays. Take care.
Wonderful sessions like always . Would love to hear your take on UIPATH & CRISPR valuations. Following up on one of your videos . Both of these companies might be classified as offering services which might revolutionise the way we live .
The robo-taxi business is total fantasy. If you took the time to speak with an expert that doesn’t have a financial bias, you could easily determine that. Instead you just repeat lies.
How so? I live in the Scottsdale area and the Waymo service (which is a robo-taxi business) is fully operational here. I’ve used it a multitude of times.
Thanks Professor! When I studied valuation in business school there was no mention of key people valuation. I would argue that this is a highly impacting variable so there is a clear need for a theoretical framework to value their contribution.
Conclusion: There are many canards about intrinsic valuation that are in wide circulation, and one is that intrinsic valuations do not reflect the value of people in a company. That is not true, since intrinsic valuations, done right, should incorporate the value of a key person or people in a business, reflecting that value in cash flows, growth or risk inputs. That said, intrinsic value is built, not on nostalgia or emotion, but on the cold realities that key people can sometimes destroy value, that a key person in a company can go from being a value creator to a value destroyer over time and that key people, in particular, and human capital, in general, will matter less in some companies (more mature, manufacturing and with long-standing competitive advantages) than in other companies (younger, service-oriented and with transitory and changing moats.
Thanks Prof. D. I have a request for you to please lay down the methodology of valuing companies like OnlyFans. Not trying to be frivolous here at all. I strongly believe that as technology, particularly with the gap between AI-science and engineering reduces, a lot of high-cost multiple-specialised businesses are going to get merged into generic 2-3 member small companies, all managed and distributed by a platform. These can then defy the advertising/pay-parity issues (eg: director making more out of a movie than the actor in case of OF etc). Identifying the risks, potential of growth etc embedded in a valuation framework would be a great learning for us.
Looking forward to more learning from you. Happy Holidays. Take care.
Wonderful sessions like always . Would love to hear your take on UIPATH & CRISPR valuations. Following up on one of your videos . Both of these companies might be classified as offering services which might revolutionise the way we live .
Hope your viewers have watched succession. Otherwise that's an insane spoiler 😂
The robo-taxi business is total fantasy. If you took the time to speak with an expert that doesn’t have a financial bias, you could easily determine that. Instead you just repeat lies.
How so? I live in the Scottsdale area and the Waymo service (which is a robo-taxi business) is fully operational here. I’ve used it a multitude of times.
@@jordansdisciple3674 And the cost of taking that ride will likely never be economical.