Value Investing McKinsey's Valuation Book - Valuation of HD and Lowes very difficult to follow |
- McKinsey's Valuation Book - Valuation of HD and Lowes very difficult to follow
- [Aswath Damodaran] Revisiting the Big Market Delusion - December 2019
- Value investing through options
| McKinsey's Valuation Book - Valuation of HD and Lowes very difficult to follow Posted: 31 Dec 2019 04:01 PM PST I am a newbie on finance and valuation. Did I bite off too much by reading McKinsey's Valuation Book? Specifically, I am reading the 5th edition and going through the valuation of Home Depot and Lowe's and the way NOPLAT, FCF, and Invested Capital is defined at first is fine. I understand it. But as you get through the nitty-gritty, a lot of the numbers seem like they come out of nowhere. For example, I am going through the calculation of NOPLAT with HD's 10ks. Some of the numbers seem to match up, like revenues, EBIT, etc. But I cannot replicate a lot of the numbers like change in working cap, net capital expenditures, of investments in goodwill, etc. It seems like McKinsey has their own definition of a lot of these terms and its just not easily replicable. Also the way they treat operating leases is different then how Damodaran does it and it throws off a lot of FCF numbers. Is this just me or does anyone have these issues? Is there a valuation book that is easier to follow? [link] [comments]  |
| [Aswath Damodaran] Revisiting the Big Market Delusion - December 2019 Posted: 31 Dec 2019 07:49 AM PST |
| Value investing through options Posted: 31 Dec 2019 02:27 PM PST |
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