tag:blogger.com,1999:blog-8152901575140311047.post6328128863707716813..comments2024-03-27T09:01:53.517-04:00Comments on Musings on Markets: Facebook and "Field of Dreams": Hoodies, Hubris and HooplaAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger46125tag:blogger.com,1999:blog-8152901575140311047.post-89143973635925656102013-09-27T01:36:08.053-04:002013-09-27T01:36:08.053-04:00Hi nice blog thanks for sharing ,Searching for ful...Hi nice blog thanks for sharing ,Searching for <a href="www.live-inspace.com/" rel="nofollow"><b>fully furnished office space for rent</b></a> we will provide you the genuine office spaceAnonymoushttps://www.blogger.com/profile/06092325432048539958noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-5726595480427548462013-03-05T01:33:07.671-05:002013-03-05T01:33:07.671-05:00There is a vast supply of shares that few will dem...There is a vast supply of shares that few will demand now, in light of the IPO debacle. Facebook stock will nose-dive, and never recover. <br /><a href="http://www.finalstepmarketing.com/" rel="nofollow">Internet Marketing for Small Business</a>Alexhttps://www.blogger.com/profile/13257884669435604177noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-79758901007663555992012-12-05T19:10:57.620-05:002012-12-05T19:10:57.620-05:00I get tired of hearing about facebook. Theirs many...I get tired of hearing about facebook. Theirs many other interesting companies out their.PENNY STOCK BLOGhttp://www.manhattancalumet.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-60512433607696163162012-10-27T01:55:29.280-04:002012-10-27T01:55:29.280-04:00Hi this very nice blog and good articleHi this very nice blog and good articleSocial Networking Siteshttp://www.teenming.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-43437970332704746222012-08-15T14:29:58.880-04:002012-08-15T14:29:58.880-04:00wowwowtherealhttp://hackerkepzes.hu/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-20866228862236233322012-07-27T11:12:36.438-04:002012-07-27T11:12:36.438-04:00Dear Prof
>>>>>>>>>>...Dear Prof<br /><br />>>>>>>>>>>>>>><br />1. Valuation Update<br />.....Quickly reprising that valuation, I valued the equity in the company at $29/share (assigning an overall value of about $72 billion for Facebook's equity), with the following key assumptions:<br />a. .......<br /><<<<<<<<<<<<<<<<<<<<<<<<<br /><br />any updates professor ? price as of now is circa 23.10 per share .. <br /><br />what are the two / three main assumptions you would change should you do the sp sheet today ?<br /><br />regards<br />SubuSubuhttps://www.blogger.com/profile/09106513875910594290noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-82986741398284082622012-07-04T02:50:43.141-04:002012-07-04T02:50:43.141-04:00It's good to hear that the US Government has i...It's good to hear that the US Government has increased their commitment to cleaner energy. Today people are using alternative energy such as sun and wind due to the benefits it gives to us. Excellent post, it's worth reading.<a href="http://wwwwww.dkpp.com.au/property-menu/property-valuations-sydney/" rel="nofollow">property valuations in sydney</a>property valuations brisbanehttp://www.dkpp.com.au/property-valuations-in-sydney/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-7129060332832286582012-06-25T07:15:34.768-04:002012-06-25T07:15:34.768-04:00This share game some time give so much benefit tha...This share game some time give so much benefit that we can not imagine some time share make every thing zero depend upon the valuation.<br /><a href="http://www.dkpp.com.au/property-valuations-in-sydney/" rel="nofollow">property valuations in sydney</a>property valuationshttp://www.dkpp.com.au/property-valuations-in-sydney/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-82627856956317240502012-06-23T01:39:35.477-04:002012-06-23T01:39:35.477-04:00I am currently seeking ways in which I could boost...I am currently seeking ways in which I could boost my information in this said topic you have placed here. It does help me a lot understanding that you have discussed this details here easily.<br /><a href="http://www.dkpp.com.au/property-valuations-in-sydney/" rel="nofollow">property valuations brisbane</a>property valuations brisbanehttp://www.dkpp.com.au/property-valuations-in-sydney/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-27411104876450565082012-06-08T04:09:40.629-04:002012-06-08T04:09:40.629-04:00Thank you for this lesson pricing vs valuation
m....Thank you for this lesson pricing vs valuation <br />m.cohen@alphavalue.euAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-72022572412266164372012-06-05T09:28:01.011-04:002012-06-05T09:28:01.011-04:00nice writtennice writtenlive sportshttp://sportsfunia.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-57367313592055070472012-06-03T16:50:04.144-04:002012-06-03T16:50:04.144-04:00The IPO is just the opening inning in a much longe...The IPO is just the opening inning in a much longer game. Only 18% of the shares outstanding were offered in the IPO and the post-IPO collapse makes the remaining 82% not only less valuable but more difficult to unload. The investment banks may have collectively made $100 million on the deal, but split it up among the syndicate and think about the reputation damage that they have done to themselves, I am sure that they have come out behind. Even the insiders who sold have big stakes left in the firm... So, I don't see any winners...Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-30858006709639462382012-06-02T11:10:14.767-04:002012-06-02T11:10:14.767-04:00Prof,
You stated the following in your entry from...Prof,<br /><br />You stated the following in your entry from the 17th: "I would be very surprised, if the stock were overpriced; the bankers and the company have too much too lose."<br /><br />I'm curious, exactly what has MS, the other underwriters, and FB lost by overpricing this IPO? Some argue MS has profited off the over-allotment, and FB has it's capital raise. Where's the downside to overpricing in this, or any other, IPO? Thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-51664069995060503052012-05-30T04:28:14.015-04:002012-05-30T04:28:14.015-04:00Dear Professor Damodaran,
We are two students wri...Dear Professor Damodaran,<br /><br />We are two students writing a master thesis about the long-term performance of IPOs. We have found long-term unperperfomance of Norwegian IPOs ranging from 10%-30% and we are wondering if it is possible to exploit this?<br /><br />We wish you could clarify if you think it is possible to take a long-term (three years)short position and still make a profit from a situation like the Facebook IPO (after transaction costs)? <br /><br /><br />Sincerely,<br /><br />Danuka & OlavDanuka&Olavnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-28765385591532470442012-05-29T19:06:22.426-04:002012-05-29T19:06:22.426-04:00Prof. As always, your analysis and insights are in...Prof. As always, your analysis and insights are invaluable. I appreciate you sharing it with the rest of us. <br />Certainly you assessment of Facebook was right on as the market has shown since it’s IPO.<br /><br />Many thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-40405397628422656922012-05-27T00:41:50.839-04:002012-05-27T00:41:50.839-04:00Dear Sir
I'm not really understand your model ...Dear Sir<br />I'm not really understand your model in "facebookIPO". Why did you adjust dept and equity? Pls explain.<br />And, pls send me the standard model.<br />Thank you<br />My email: thuong.huynhngoc@gmail.comhoptacltdhttps://www.blogger.com/profile/01345909301750509886noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-61578545533257044662012-05-24T14:22:13.314-04:002012-05-24T14:22:13.314-04:00Prof Damodaran, I am a student and still learning ...Prof Damodaran, I am a student and still learning about Valuation and as I try to quantify the 'Intrinsic Value' of a company- I cannot help but think the non-monetary value that would eventually turn into more revenues.<br /><br />I see companies and what 'value' they've added, if they are gone- will we miss them. And I thought the pricing for facebook was bizarre. <br /><br />However, I do not conform with what facebook is being criticised for. Today on CNBC, Investors do not like facebook focusing more on building user experience and not on advertising. <br /><br />I currently pay $7 for a Hulu Plus subscription and $20 for a Netflix conenction per month. I would be more than happy to pay a price for a Social Media site with no advertising. Of course, there needs to be demographic profiling, emerging market strategy differences (focusing on advertising) but what I am saying is- Mark Zuckerberg is being criticised for the wrong reasons and yes- he surely needs to get an 'Eric Schmidt' but I have faith his statement is more to let people know that 'facebook ain't going to turn into another myspace'. I would add a 'premium' not a 'disocunt' for this.<br /><br />Can you please let me know what I am seeing wrong/right?Shivaninoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-56057083819273271692012-05-23T15:11:03.676-04:002012-05-23T15:11:03.676-04:00Sam,
I thought I used the same S-1 and got the cas...Sam,<br />I thought I used the same S-1 and got the cash and the debt from it. In the debt, I did include the present value of the lease commitments for the future.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-90401275034058245662012-05-23T11:21:13.391-04:002012-05-23T11:21:13.391-04:00As for the hoodie and suit discussion, Taleb warns...As for the hoodie and suit discussion, Taleb warns "Beware of men wearing ties"Voghttps://www.blogger.com/profile/06751539343637951104noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-52897524675579492892012-05-23T11:04:15.551-04:002012-05-23T11:04:15.551-04:00Prophetic Article! starting form premium for barel...Prophetic Article! starting form premium for barely a few hours after IPO to the decline in price to the expected levels. Had it not been an IPO many would have thought that Prof. had some insider information.Pranav Pratap Singhhttps://www.blogger.com/profile/01893712441478627342noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-5909732280334976732012-05-23T11:01:12.281-04:002012-05-23T11:01:12.281-04:00This comment has been removed by the author.Pranav Pratap Singhhttps://www.blogger.com/profile/01893712441478627342noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-12508131009571644642012-05-23T08:43:26.408-04:002012-05-23T08:43:26.408-04:00You really don't need much of a model to value...You really don't need much of a model to value this bubble. Lets be generous and price it at 10x revenue. Much much much larger than apple's, google's and amazon's. What do you get? $13. It's coming. Give it a month.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-78104552253070553392012-05-23T07:51:56.014-04:002012-05-23T07:51:56.014-04:00i have another Q about the valuation :
book value ...i have another Q about the valuation :<br />book value of debt shouldnt it be +279 the cyrrent portion of capital lease<br />and for 2010 its 117+250=367 +106<br />473?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-80147600743544466432012-05-22T17:23:24.782-04:002012-05-22T17:23:24.782-04:00hi
the cash no' isnt it about 3900 in the s-...hi<br />the cash no' isnt it about 3900 in the s-1 filling?<br /><br />general Q : equity incomes included in the EBIT?<br /><br />THANKS IN ADVANCED<br />SamAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-88801177181061959212012-05-22T10:48:05.611-04:002012-05-22T10:48:05.611-04:00Let me relativize my last posting: I think althoug...Let me relativize my last posting: I think although value is subjective and different to each individual - there should be a common (worldwide) standard for an objectified company value like it is partially common practice under appraisers in expert opinions, i.e. to value the company under the going concern assumption, an unchanged business model (stand-alone), considering only already introduced measures (acquisitions, divestments, business model changes etc.) with realistic expectations for the future as part of its market opportunities and risks etc.<br /><br />Such an objectified company value could be (today) in fact around $50 bn or $20 per share.<br /><br />However, on the stock exchanges a market valuation is being created by all buyers and sellers which depends on each individual value concept which is based on individual valuations of "hope and visions". If more market participants believe in the visionary Mark Zuckerberg than those that don't believe, than the stock market valauation will be more likely $500 bn than $50 bn. Similarly to the value of our currencies: if people have no faith in their economy (economic performance) and anticipate inflation there will be inflation per definition.<br /><br /><br />In summary Facebook is religion, philosophy and psychology and a little bit of mathematics.<br /><br />Hope this was entertaining and spiritual stimulating...<br /><br /><br />Freddy BigAnonymousnoreply@blogger.com