My First Valuation Project
My 1st Valuation Project!!!! Since November 2021, I started to develop an interest in valuation as a subject because understanding whether a stock/(anything) is priced correctly or not matters the most especially after such a bull rally since 2020. To start with I watched a series of sessions taken by Aswath Sir, and from there, I started developing my perspective. "Good Valuation is a bridge between numbers and stories." Me being more of a number cruncher, telling a story for the company was difficult for me, but after reading a bunch of articles, I finally articulated one, which I know I can be wrong and am keeping the feedback loop open for that!!
So, we all know Semiconductors have been the talk of the town for the past few months due to a shortage of chips, supply chain restrictions, inflation, and whatnot. As a result, I picked a company named NVIDIA from this sector. In the following excel model, I have analyzed the company starting from its historical data/financials, management, shareholding pattern to its future growth prospects and risks it can face. There are a lot more aspects a company can have, but for now, I have kept it simple.
Everything you will be able to see in the pdf attached. Based on my assumptions and estimations, I, as of 24th March, find the company rightly priced.
Everyone can have a different story when it comes to valuation, hence any difference of opinion, I would like to hear.
Also, thank you to Aswath Sir for responding so quickly to my queries and for the sessions/content you provide online for everyone!
"Valuation is not science, it's not art, but it’s a Craft"
Aswath Damodaran Sir
So, we all know Semiconductors have been the talk of the town for the past few months due to a shortage of chips, supply chain restrictions, inflation, and whatnot. As a result, I picked a company named NVIDIA from this sector. In the following excel model, I have analyzed the company starting from its historical data/financials, management, shareholding pattern to its future growth prospects and risks it can face. There are a lot more aspects a company can have, but for now, I have kept it simple.
Everything you will be able to see in the pdf attached. Based on my assumptions and estimations, I, as of 24th March, find the company rightly priced.
Everyone can have a different story when it comes to valuation, hence any difference of opinion, I would like to hear.
Also, thank you to Aswath Sir for responding so quickly to my queries and for the sessions/content you provide online for everyone!
"Valuation is not science, it's not art, but it’s a Craft"
Aswath Damodaran Sir
