The evolution of a finance professional: * 3 year finance/accounting undergraduate course * 2 year MBA * 10 years in investment banking * Spend 20 hours listening to Prof Damodaran explain what it all REALLY means.
@prakash.srn.17
10 ай бұрын
True that!!
@danihellz
Жыл бұрын
I can’t believe we get access to this education… thank you so much Aswath.
@AbelGoldstein
Жыл бұрын
Thank you prof for doing all this open source, love you!!!
@chandrannatarajan6616
Жыл бұрын
After listening to such a wonderful prof, I regret for having done engineering and wish I had done Economics and Finance. Thank you Prof. Be blessed always with good health, long life and divine grace🙏🙏🙏
@giuliofr7797
Жыл бұрын
Thanks for spreading so valuable knowledge for free, professor. I have a question if anyone could help me: when he says that treating R&D as an OPEX increases ROA because it decreases the denominator, doesn't it decrease the numerator as well, nullyfing the effect?
@TeamCrew_RaunakSinghBisht
7 ай бұрын
Well, it won't be an equal effect on both numerator and denominator. Let's go through it this way: Assume an x amt. of R&D for all the yrs. and amortizable life of 5 yrs. So your unamortized R&D would come out to be 3x and amortization this year would be x. [You can see it as: unamortized R&D = x + 0.8x + 0.6x + 0.4x + 0.2x + 0.0x and amortization = 5*(0.2x)] Taking the difference, that would be an effective decrease in Equity of 2x while in numerator decrease would be only x [Ignoring the tax benefit in the calcs to simplify] Thus, we can see how conventional accounting is inflating the Return on Capital. Hope it's understandable...
@bhanuvohra4681
Жыл бұрын
Hello Sir, The reason why RnD is expensed is because if the research isn’t fruitful then the entire RnD cost needs to be expensed at once. For ex, if SAP stalled the RnD in the current year then they would have to expense the entire 2.9m capitalised cost to PnL in CY. This would result in abnormal loss. Therefore in accounting only Development cost is capitalised on achieving technical feasibility when the future cashflows can be reasonably estimated. It's the same logic that you gave for increase in head count.
@giampierofrischi527
Жыл бұрын
You are the best professor
@saleemnaser5567
Жыл бұрын
Thank you prof Aswath for this valuable lecture can we get name of forensic accounting reference you mention at 41:00Sec
@Aswath Damodaran thank you for the lesson professor. Purchased 2 of your books already. I have a tricky question about the Sales to Capital ratio: when you're estimating the current sales to capital ratio, would you include negative retained earnings in the denominator of the Sales/Capital equation? My thoughts are that including the negative retained earnings can highly overestimate the metric for a company that's received a lot of funding but has accumulated significant losses over time (and therefore shouldn't be included) Thank you in advance! Gui
@surbjitsingh3261
3 ай бұрын
Retained earnings is not a measure of invested capital. Retained earnings is a theoretical profit accumulation balance - if its negative it means the company has not made any profit over its history, given the summation of all net income over periods. Keep it simple: there are only TWO SOURCES of capital to fund a business: money thats invested by holders of equity, and/or, money that is borrowed. Anything that doesnt folllow that definition is muted.
@harishariharan7664
9 ай бұрын
I have a question. If we ignore short term loan in current liabilities for noncash working capital since we can add it to the cost of capital then what about when calculating FCFE. We only have cost of equity to work with and we can't add debt to that equation right?
@harshitporwaliitb5268
Жыл бұрын
Which book are you talking about for forensic accounting
@Abhishek-gv8dg
10 ай бұрын
25:42-> Don't you think once we start capitalising R&D (even those with lower probability to be commercialised), it will go against the fundamental element of an asset recognition ('bring in future benefit')?
@Darshan01Singh
Жыл бұрын
My Guru,parnam sir ji
@FRANKWHITE1996
Жыл бұрын
Thanks for sharing ❤
@ВикторияД-в8й
Жыл бұрын
Great!
@dessanguyen
Жыл бұрын
🔥
@abhijitghosh6653
Жыл бұрын
Sir, no sound? Not sure if it's still loading
@fintrail
Жыл бұрын
use earphones
@nancybutola5473
8 ай бұрын
Starts at 4:02
@qwishypeter2282
Жыл бұрын
Is it just me or is there no sound on this video?
@fintrail
Жыл бұрын
use earphones
@chrisbuckley3403
Жыл бұрын
My lip reading isn't good enough.... We need the sound please.
@lalitsharma5666
Жыл бұрын
Pls somebody tell my from where i have to be start the valuation lectures , there are multiple lecture have been in playlist and i get confused Pls guide me
@Gandharpn
Жыл бұрын
Valuation Undergraduate Spring 2023.
@lalitsharma5666
Жыл бұрын
@@Gandharpn brother there are also a valuation playlist in just starting of the channel means 5-6 year ago s, should i have to start from there , ya i have to start from there you mentioned??.
@Gandharpn
Жыл бұрын
No. Just use recent year. Prof is uploading lectures weekly.
@lalitsharma5666
Жыл бұрын
@@Gandharpn thanks brother
@lalitsharma5666
Жыл бұрын
@@Gandharpn brother can you tell me is thet lecture sufficient , and Anything i have read after this lectures , any material thet Prof. Have provided , but i missing thet one?.
@gabakusa
Жыл бұрын
you have to more your classes more dynamic, otherwise they are boring, your views reflect that
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