Lecture Notes – Vantage Point: Alphabet’s Intrinsic Value

You can find my lecture notes on Vantage Point: Alphabet’s Intrinsic Value here. I will be delivering this lecture on Dec 12th.

13 thoughts on “Lecture Notes – Vantage Point: Alphabet’s Intrinsic Value”

1. r says:

hi jana, first of all thanks a lot for this great work. really appreciate it. secondly, just wanted to know have you recorded these lectures. i think they will be of great value to your students like me.

• Jana Vembunarayanan says:

Thanks for the comments. I am doing this for the first time so recording would put some more pressure in me. Will record it sometime in the future.

Regards,
Jana

2. Balaji says:

Hi Jana,

Excellent article !! You have used EPV valuation approach in this article. Do you prefer this approach or valuation approach used by Stephen Penman ?

Thanks,
Balaji

• Jana Vembunarayanan says:

Balaji,

Thanks for the comments. They are the same.

EPV = Normalized earnings / Cost-of-capital

Penmann value = Book value + (Excess earnings / Cost-of-capital)
Penmann value = [(Normalized Earnings – Excess earnings) / Cost-of-capital] + (Excess earnings / Cost-of-capital)
Penmann value = Normalized earnings / Cost-of-capital

Penmann value = EPV

Regards,
Jana

3. Balaji says:

Thanks Jana for quick response !!

4. Rajesh says:

Hi Jana,

Firstly, kudos to the great service you are doing by sharing your knowledge.

I am still taking baby steps in valuation and would like to know how to calculate “net financing assets”? I tried to google it but didn’t find much info.

Thanks,
Rajesh

5. Hi Jana,
Thanks for such great lecture notes.
Conceptually, a company’s EPV is its moat/mgmt/human resources/brands etc. What is then the fundamental reason for a real estate property’s EPV? Is it more along the lines of its location, and hence its ability to grow/shrink with the general economy of the local surroundings? Or is EPV=0 for a real estate property?

• Jana Vembunarayanan says:

Toni,

It’s location + inflation + low maintenance capex.

Regards,
Jana

• low capex reqm to maintain attractiveness is a good point. Thanks!

6. David says:

Hi Jana – What are your thoughts on buying the Alphabet class C’s vs. the class A’s? What is best?

• Jana Vembunarayanan says:

David,

I own Class C shares. My tiny percentage of shares will not move the voting needle even by an inch.

Regards,
Jana