Session 19: More on Pricing

In this session, we extended the discussion of the analysis of multiples by looking at PEG ratios, EV multiples and book value multiples. Each multiple, we argued, has a driver and companion variable.We then moved on to application and how best to find comparable firms and control for differences. At this point, you have the tools you need to price just about any stock (or asset). Remember that you are paying to heed to the market, controlling for differences as much as you can and hoping that pricing divergences disappear over time.Start of the class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/relval2atest.pdfSlides: http://www.stern.nyu.edu/~adamodar/podcasts/valUGspr17/session19.pdfPost class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session19Ctest.pdfPost class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session19Csoln.pdf Learn more about your ad choices. Visit megaphone.fm/adchoices