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

  1. 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.

    • 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.


  2. 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 ?


    • 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


  3. 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.


  4. 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?

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

    • David,

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


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