I've been taking them since 2019, and I still get only 20-30% from everything professors shares. And that's on a good day. Some material is too complex for my mental faculties -or the lack thereof- to acquire.
shouldn't we forecast cash flows out until the company is mature? then we can put the terminal rate on it that is close to GDP, which is suitable for a mature company? also, shouldn't a company, with good management, always be able to beat the GDP, seeing a company has many advantages for earning better than the growth of the economy--GDP, which calculates good and bad without bias?
Anyone can answer really: If the 5 year govt bond yield in my country was 8.5% pa and it does not have a sovereign rating or default spread; and it has a 5 year FD interest rate of 9.99%, which figure should I use for risk free rate? Thanks in advance!
Not fd rate at all brother, we are talking about countries defaulting and here in case of fd we are talking about a bank (assuming that this is bank fd we are talking about) which has significantly higher default risk. Hope this helps🥂
Your sheet on CDS Spreads shows Indian premia at 1.67% and actually 1.35% net of US. Even the interest rate differential between 2 countries is 1.75% (RBI CRR Rate (6.50%)- Fed Interest Rate (4.50-4.75%)). USDINR Forward premia in the market is also around 1.75% i.e. this is what markets are actually paying for real trades. My question now is why did you pick a risk premium of 2.69% for India basis the Baa3 rating- I mean why did you pick one on the higher side?
"If capital flows freely, there will be only one risk free rate", so in near future, when my Bitcoin wallet providers start paying me interest for parking my Bitcoins with them, the average Bitcoin interest should replace global risk-free rate, since Bitcoin is a Universal currency- flows freely across nations.
Class starts at 4:30
Bless you I thought I was going insane
@@pauljones9150 don’t worry bout it my brother
Thanks
Ty!
I am on my fourth year journey of Value investing, this course covers so many holes in my knowledge! Thank you!
Absolutely fantastic class, I'm doing my CFA level 1, and this feels like soul food compared to the dry teaching of the CFA curriculum.
from where are you taking CFA level 1 classes ?
I think it's great that this is made accessible for all! 👍👍👍 Great antidote against CNBC-induced 'brain-rot' 😅
Need to take these classes 5 times more! Too much information for my little brain
I've been taking them since 2019, and I still get only 20-30% from everything professors shares.
And that's on a good day. Some material is too complex for my mental faculties -or the lack thereof- to acquire.
Thanks a lot for making this accessible for all!
Valuable teachings 👍
main lecture starts at 12:46
shouldn't we forecast cash flows out until the company is mature? then we can put the terminal rate on it that is close to GDP, which is suitable for a mature company? also, shouldn't a company, with good management, always be able to beat the GDP, seeing a company has many advantages for earning better than the growth of the economy--GDP, which calculates good and bad without bias?
What degree is this for? Are these students doing BS Finance, for example, or what? Also whats the name of this class/ module?
This professor teaches NYU business school undergrads and graduate students. The valuations course is pretty much the same information for both.
Anyone can answer really:
If the 5 year govt bond yield in my country was 8.5% pa and it does not have a sovereign rating or default spread; and it has a 5 year FD interest rate of 9.99%, which figure should I use for risk free rate? Thanks in advance!
Not fd rate at all brother, we are talking about countries defaulting and here in case of fd we are talking about a bank (assuming that this is bank fd we are talking about) which has significantly higher default risk.
Hope this helps🥂
Your sheet on CDS Spreads shows Indian premia at 1.67% and actually 1.35% net of US. Even the interest rate differential between 2 countries is 1.75% (RBI CRR Rate (6.50%)- Fed Interest Rate (4.50-4.75%)). USDINR Forward premia in the market is also around 1.75% i.e. this is what markets are actually paying for real trades. My question now is why did you pick a risk premium of 2.69% for India basis the Baa3 rating- I mean why did you pick one on the higher side?
corruption & accounting issues can be reason for higher premia. guess
"If capital flows freely, there will be only one risk free rate", so in near future, when my Bitcoin wallet providers start paying me interest for parking my Bitcoins with them, the average Bitcoin interest should replace global risk-free rate, since Bitcoin is a Universal currency- flows freely across nations.
thanks for the video
17:32
514,000 subscribers and only 2 comments!!! People are getting tons of value for free and give nothing in return.
If i had money I won’t be watching it