
In this session, we completed our discussion of private company valuation, starting with how to deal with illiquidity when valuing private businesses. We then looked at why the value of a private business will be higher to a public company or in an IPO and the special issues that arise from IPOs, including dealing with the IPO offer proceeds and the investment banking price guarantee. We closed the session byy looking at how to deal with expected transitions as a private company moves from a sole ownership to VC financing to a public offering. If you are interested in total betas and how different they are from market betas, by sector, you can get my estimates at the link below:
http://www.stern.nyu.edu/~adamodar/pc…
Start of the class test: http://www.stern.nyu.edu/~adamodar/pd…
Slides: http://www.stern.nyu.edu/~adamodar/po…
Post class test: http://www.stern.nyu.edu/~adamodar/pd…
Post class test solution: http://www.stern.nyu.edu/~adamodar/pd…
Ben Graham Lecture Notes
I recently stumbled across two precious resources about the Godfather of value investing, Ben Graham. The first resource is a collection of notes from Benjamin Graham’s lectures when he was a professor at Columbia University. The notes were taken during lectures given in 1946, six years after the 1940 version of "Security Analysis" was published. Read More