Quiz: Introduction to Valuation by Aswath Damodaran

Test your understanding of the specific concepts, biases, and challenges in valuation as explained in this lecture

Business mixed 8 Questions Video Quiz

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Q1 Intermediate 2 pts

According to the video, what are the three major problems that cause valuations to go bad? Video Reference:
"when valuations go bad it's not because of the numbers. It's because of three big problems I see in ..."

Timestamp: 1:00

Select all correct answers

Bias, uncertainty, and complexity Models, numbers, and data Stories, narratives, and calculations Mathematics, timing, and market conditions

Q2 Beginner 1 pts

How long had the speaker been teaching valuation at NYU when this video was recorded? Video Reference:
"When I first started teaching valuation 26 years ago at NYU..."

Timestamp: 2:00

26 years 20 years 15 years 30 years

Q3 Intermediate 2 pts

In the speaker's lemming analogy, what are described as 'the seven most deadly words in investing'? Video Reference:
"They must know something that you don't. Remember those seven words? They're the seven most deadly w..."

Timestamp: 3:00

They must know something that you don't The market is always right today Past performance guarantees future returns Buy low and sell high always

Q4 Advanced 3 pts

What are the three types of lemmings the speaker identifies among investors? Video Reference:
"you can divide all investors into three groups of lemmings. The first group I call proud lemmings......"

Timestamp: 4:00

Select all correct answers

Proud lemmings, Yogi Bear lemmings, and lemmings with life vests Smart lemmings, dumb lemmings, and average lemmings Fast lemmings, slow lemmings, and careful lemmings Leading lemmings, following lemmings, and independent lemmings

Q5 Intermediate 2 pts

According to the video, what is the primary purpose of valuation? Video Reference:
"That's all valuation is. Valuation gives you a life vest. It gives you something to hold on to when ..."

Timestamp: 5:00

To act as a life vest when others change direction To predict exact market prices To generate complex financial models To guarantee investment returns

Q6 Beginner 1 pts

The speaker states that valuation is inherently simple, but we choose to make it complex. Video Reference:
"The first is that valuation is simple. We choose to make it complex..."

Timestamp: 0:30

True

False

Q7 Intermediate 2 pts

What specific stock price example does the speaker use when discussing how bias affects valuation? Video Reference:
"Let's suppose it's Amazon. stocks trading at 278, one of the great stocks of the last decade. You co..."

Timestamp: 4:30

Amazon at $278 vs. calculated value of $50 Apple at $150 vs. calculated value of $75 Tesla at $200 vs. calculated value of $100 Microsoft at $300 vs. calculated value of $150

Q8 Advanced 3 pts

According to the speaker, what two questions should you ask first when reviewing a valuation? Video Reference:
"When I see a valuation cross my desk, before I look at the numbers and the assumptions, I ask two qu..."

Timestamp: 6:00

Select all correct answers

Who did the valuation and who paid for it What models were used and what assumptions were made When was it done and how long did it take What was the final value and how was it calculated

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Quiz: Introduction to Valuation by Aswath Damodaran

According to the video, what are the three major problems that cause valuations to go bad? Video Reference: "when valuations go bad it's not because of the numbers. It's because of three big problems I see in ..." Timestamp: 1:00

How long had the speaker been teaching valuation at NYU when this video was recorded? Video Reference: "When I first started teaching valuation 26 years ago at NYU..." Timestamp: 2:00

In the speaker's lemming analogy, what are described as 'the seven most deadly words in investing'? Video Reference: "They must know something that you don't. Remember those seven words? They're the seven most deadly w..." Timestamp: 3:00

What are the three types of lemmings the speaker identifies among investors? Video Reference: "you can divide all investors into three groups of lemmings. The first group I call proud lemmings......" Timestamp: 4:00

According to the video, what is the primary purpose of valuation? Video Reference: "That's all valuation is. Valuation gives you a life vest. It gives you something to hold on to when ..." Timestamp: 5:00

The speaker states that valuation is inherently simple, but we choose to make it complex. Video Reference: "The first is that valuation is simple. We choose to make it complex..." Timestamp: 0:30

What specific stock price example does the speaker use when discussing how bias affects valuation? Video Reference: "Let's suppose it's Amazon. stocks trading at 278, one of the great stocks of the last decade. You co..." Timestamp: 4:30

According to the speaker, what two questions should you ask first when reviewing a valuation? Video Reference: "When I see a valuation cross my desk, before I look at the numbers and the assumptions, I ask two qu..." Timestamp: 6:00

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Calculating Your Results...

Source Video

According to the video, what are the three major problems that cause valuations to go bad? Video Reference:
"when valuations go bad it's not because of the numbers. It's because of three big problems I see in ..."

Timestamp: 1:00

How long had the speaker been teaching valuation at NYU when this video was recorded? Video Reference:
"When I first started teaching valuation 26 years ago at NYU..."

Timestamp: 2:00

In the speaker's lemming analogy, what are described as 'the seven most deadly words in investing'? Video Reference:
"They must know something that you don't. Remember those seven words? They're the seven most deadly w..."

Timestamp: 3:00

What are the three types of lemmings the speaker identifies among investors? Video Reference:
"you can divide all investors into three groups of lemmings. The first group I call proud lemmings......"

Timestamp: 4:00

According to the video, what is the primary purpose of valuation? Video Reference:
"That's all valuation is. Valuation gives you a life vest. It gives you something to hold on to when ..."

Timestamp: 5:00

The speaker states that valuation is inherently simple, but we choose to make it complex. Video Reference:
"The first is that valuation is simple. We choose to make it complex..."

Timestamp: 0:30

What specific stock price example does the speaker use when discussing how bias affects valuation? Video Reference:
"Let's suppose it's Amazon. stocks trading at 278, one of the great stocks of the last decade. You co..."

Timestamp: 4:30

According to the speaker, what two questions should you ask first when reviewing a valuation? Video Reference:
"When I see a valuation cross my desk, before I look at the numbers and the assumptions, I ask two qu..."

Timestamp: 6:00