tag:blogger.com,1999:blog-8152901575140311047.post7527321857022939497..comments2024-03-28T12:49:46.624-04:00Comments on Musings on Markets: Data update for January 2009Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8152901575140311047.post-9444053129307393142012-05-03T16:54:04.239-04:002012-05-03T16:54:04.239-04:00Dear prof
Your website is extremely useful. Your ...Dear prof <br />Your website is extremely useful. Your gesture is really appreciated (I dont think you have any selfish reasons). <br />Thanks <br />SunilAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-25081491125414432532009-02-02T14:31:00.000-05:002009-02-02T14:31:00.000-05:00Dear Mr.Damodaran, I agree that at least for a whi...Dear Mr.Damodaran,<BR/><BR/> I agree that at least for a while, projects and valuations could be made with a higher cost of equity and cost of debt, but when we make valuations we have to evaluate until perpetuity and this high cost of capital will decrease again in the future. <BR/>Shouldnt we use different kind of rates for the next say 2 years and use a "normalized" rate for the next year on? <BR/>or maybe should we use a long term cost of capital to make valautions and put the risks from the current crisis in th cash flows? <BR/>Isnt maybe the risk of a world crisis already internalized in the historic risk premium so we dont have to change it every year?<BR/><BR/>It would be great to have an answer on that questions that haunt me at night when I think about what I should do.<BR/><BR/><BR/>thanks for your incredible books and kind regrads,<BR/><BR/>Cristóbal Gevert<BR/>ChileCristóbal Geverthttps://www.blogger.com/profile/07398781152114134061noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-28803675791887937432009-01-27T14:25:00.000-05:002009-01-27T14:25:00.000-05:00I definitely agree that historical risk premiums d...I definitely agree that historical risk premiums don't mean much anymore, no more than traffic engineering matters to someone who was run over by a bus.<BR/><BR/>But at least our historical data tells us where the sidewalk usually is.Unknownhttps://www.blogger.com/profile/06662201005690412179noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-82954750197836644082009-01-23T17:14:00.000-05:002009-01-23T17:14:00.000-05:00Historical risk premiums do not stand for much rig...Historical risk premiums do not stand for much right now. I do have an extended paper on this on my website and there was an earlier post on the blog on the topic. You can find the paper under research/papers on my site.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-1441690794659259312009-01-23T15:44:00.000-05:002009-01-23T15:44:00.000-05:00I’m curious of your thoughts CAPM - at least in a ...I’m curious of your thoughts CAPM - at least in a practical/empirical sense. It seems to me that the standard way to the observe equity risk premium (i.e., looking at long run stock market returns relative to the “risk free” rate – in reality looking at Ibbotson’s) no longer makes sense as the decline in the index would cause one to observe a lower required equity return (when we all know that equity risk has increased). Am I missing something/are there alternatives to estimate cost of equity that avoid this problem (if it is one)?Unknownhttps://www.blogger.com/profile/10279139631568953870noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-67753305594937215572009-01-23T13:50:00.000-05:002009-01-23T13:50:00.000-05:00Thanks a lot for posting this data professor Damod...Thanks a lot for posting this data professor Damodaran. I've been using your valuation averages for some time now, and they are of great help for people like me with no access to Bloomberg. Thanks again.MDDPhttps://www.blogger.com/profile/17905469990862369356noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-10330621061863130192009-01-22T07:41:00.000-05:002009-01-22T07:41:00.000-05:00Dear Sir,I think you are doing the right thing for...Dear Sir,<BR/>I think you are doing the right thing for all students and private investors as they are in much worse position then professionals and someone should put some light on this. <BR/>All good thins pay back so your future is bright.Unknownhttps://www.blogger.com/profile/03931178807947572866noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-67416326033251626342009-01-22T06:26:00.000-05:002009-01-22T06:26:00.000-05:00Respected Sir, Can you also upload some of you vid...Respected Sir, <BR/>Can you also upload some of you video or audio lecture as you have added introductory lesson on Corporate Finance,Valuation,Portfolio<BR/>Management and Real Options on Valuation. It would be of great help to we students.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-68989113532144816362009-01-21T15:50:00.000-05:002009-01-21T15:50:00.000-05:00Your comment "We are scaling post-crisis prices t...Your comment "We are scaling post-crisis prices to pre-crisis accounting numbers" is a good reminder that we are still half way through this financial crisis with more damage waiting to happen. Amateur investors would do well to remember that even at current prices stocks may not be going cheap in a recessionary environment.dharmahttps://www.blogger.com/profile/17951684922920485754noreply@blogger.com