tag:blogger.com,1999:blog-8152901575140311047.post1310293662869136257..comments2024-03-28T06:23:58.716-04:00Comments on Musings on Markets: Dual share structure: The Google model spreadsAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-8152901575140311047.post-51377067164206712612013-01-13T19:23:43.096-05:002013-01-13T19:23:43.096-05:00Professor Damodaran,
I'd like to know more ab...Professor Damodaran,<br /><br />I'd like to know more about the 5% premium. Do you have any resources on how this number is derived? Is this a valid rule of thumb when valuing company with the dual share structure?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-61523235404207369132011-12-06T08:55:49.829-05:002011-12-06T08:55:49.829-05:00I am trying to compute the value of the class A sh...I am trying to compute the value of the class A shares that are the non-voting shares..<a href="http://www.bestpharmacy.org/xlpharmacy.html" rel="nofollow">xlpharmacy</a>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-21477447638054554052011-06-04T07:32:21.060-04:002011-06-04T07:32:21.060-04:00Discount rates are blunt instruments and not desig...Discount rates are blunt instruments and not designed for augmentation. Analysts tend to add all types of premiums to discount rate, for small market capitalization, for illiquidity or for the presence of options. For the most part, these premiums are arbitrary and often end up miscounting or double counting risk.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-26349692516903668572011-06-03T16:26:07.272-04:002011-06-03T16:26:07.272-04:00Krishnan,
Interesting... you can go ahead with yo...Krishnan,<br /><br />Interesting... you can go ahead with your method and then compare your numbers to prof's number.<br /><br />The trick is to find the proper premium..Mikehttps://www.blogger.com/profile/07355513525615592382noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-43117369348563842742011-06-02T05:52:50.806-04:002011-06-02T05:52:50.806-04:00Prof.
Thanks; I used to add a premium (for such i...Prof. <br />Thanks; I used to add a premium (for such issues) to the discount rate; This is a lot more clinical <br />Best <br />KrishKrishnanhttps://www.blogger.com/profile/01096917726465877552noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-44883971703143359292011-05-21T17:35:01.583-04:002011-05-21T17:35:01.583-04:00Mike.. thx for the link.allowing shorting would br...Mike.. thx for the link.allowing shorting would bring down the share but i am still no convinced about as low as 50...in this bullish internet market....unless there is a good correction in US equities overall.. <br /><br />I wouls suggest looking at the ADR of Baidu.com, Inc (BIDU)... its risen from <10 in 2008 to 134 currently..Gaurav Mehtahttps://www.blogger.com/profile/06728937525354512495noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-54123903764442907882011-05-21T10:04:51.940-04:002011-05-21T10:04:51.940-04:00Gaurav,
As pointed out by a reader in a previous ...Gaurav,<br /><br />As pointed out by a reader in a previous post, check this out:<br />http://blogs.wsj.com/marketbeat/2011/05/19/linkedin-helped-by-lack-of-shorting-put-options/<br /><br />This gives an indication that lkdn price is likely to fall sharply when shorts and puts start.Mikehttps://www.blogger.com/profile/07355513525615592382noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-20667824967039810482011-05-21T08:01:45.299-04:002011-05-21T08:01:45.299-04:00Not sure what the future holds for Linked.... but ...Not sure what the future holds for Linked.... but for a company like Facebook to sustain for another 5 years they will have do keep doing something out of the ordinary... people change social habits as a new better platform is available... Hi Five, MSN Messenger, Yahoo.. are good examples of the same... Linked being more of a corporate platform has a great chance to sustain and grow... Google is more like microsoft Operating Systems... has too much of a monopoly and technological advantage with regards to Searching.Gaurav Mehtahttps://www.blogger.com/profile/06728937525354512495noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-40892201233963102812011-05-21T07:50:13.769-04:002011-05-21T07:50:13.769-04:00i am not sure if the price would fall to below $50...i am not sure if the price would fall to below $50.... the reason being... internet based stocks are in their own momentum and its only when results start to disappoint its then that share prices get a reality check... not even sure when that would happen just for the reaosn maybe the company might be able to susatin ~ 100% growth for a year....<br /><br />On the same topic of different voting right shares ... Tata Motor DVR shares trade close to 40-45% discount to their actual share price... is it a bargain to buy those. since the discount is way too large on the DVR shares? This discount has only widened from 35% last year...Gaurav Mehtahttps://www.blogger.com/profile/06728937525354512495noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-77875609999576334102011-05-20T21:52:39.180-04:002011-05-20T21:52:39.180-04:00Prof, thank you for looking further into Linkedin ...Prof, thank you for looking further into Linkedin share price. I expect the price to fall to less than $50 in a few weeks.Mikehttps://www.blogger.com/profile/07355513525615592382noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-8084225557565997472011-05-20T18:02:48.927-04:002011-05-20T18:02:48.927-04:00Yes. That is because I am trying to compute the va...Yes. That is because I am trying to compute the value of the class A shares that are the non-voting shares..Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-69874915189392246552011-05-20T16:01:09.522-04:002011-05-20T16:01:09.522-04:00Prof,
Correct me if i am wrong..but u have attach...Prof,<br /><br />Correct me if i am wrong..but u have attached 5% premium to class B shares which actually increases the outstanding shares and thus lowers the per share value...Is the calculation valid?Immortalhttps://www.blogger.com/profile/02889853969712537454noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-21935225225110149302011-05-20T15:47:26.747-04:002011-05-20T15:47:26.747-04:00This comment has been removed by the author.Immortalhttps://www.blogger.com/profile/02889853969712537454noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-1089206747240721832011-05-20T15:45:19.120-04:002011-05-20T15:45:19.120-04:00This comment has been removed by the author.Immortalhttps://www.blogger.com/profile/02889853969712537454noreply@blogger.com