yes I wanted it has a beta of the equity don’t mistake n games the reason I want to separate the two is even at the end of this class outcry forced you to Lebanon level they didn’t computer caustic approbation Balder’s you should be skeptical about this beta thing actually works good I am I might never be there could be completely wrong what if tomorrow wake up to a revelation-that made a horrible way to measure risk and I shouldn’t be using it going to throw out a discounted cash flow valuation architecture just because Don’t like the way I measured risk I’m gonna come up with a different.
The inside out valuation look at those things House valuation estimate same companies and the outside it and you know what if you get corporate finance you actually have all the pieces you need for evaluation you actually done the basics evaluation class so what Want to do is it please give you a flavor of how all of this connects robed because after all the objective of the firm is supposed to maximize value right so we kind of talked around it all through this class but we’ve never actually value the company so I’m gonna start off with that very first quartering.
The previous pecked from Moscow odd what he described as cynical as somebody who knows the price of everything and the value of nothing but you can replace Watson acquit trader in exactly the same thing and I don’t mean that is an inside it really is what goes on in much of what much of what gets called undervaluation pricing and there’s nothing wrong with it your pricing things.
I did in value them but I want to focus on the valuation side of this but this clash in the valuation class will talk about what if what if your job is pricing something how do you do things they’re so there are three ways in which you can approach putting a number and a nice the first is what I’m gonna call intrinsic valuation sounds really fancy but once you start stripping the basics you’re gonna see you been doing intrinsic valuation all the way through this class.
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