Session 14: Last Loose Ends and Story to Numbers - Part 1

During this session we finished the last loose ends in valuation and started on connecting stories to numbers. The way in which companies and equity research analysts treat stock based compensation is criminally negligent and I hope that you fin this post on the topic useful:
https://aswathdamodaran.blogspot.com/...
On the story front, I began the five step process that works for me to convert stories to valuation, by talking about how you convert your understanding of a company's business model into a story, and checking that story for whether it is possible, plausible and probable.
Start of the class test: https://www.stern.nyu.edu/~adamodar/p...
Slides: https://www.stern.nyu.edu/~adamodar/p...
Post class test: https://www.stern.nyu.edu/~adamodar/p...
Post class test solution: https://www.stern.nyu.edu/~adamodar/p...