Summer ESG Module · Valuation

Why Value Moves

Discount rates, the stochastic discount factor, and where ESG enters — then a real valuation: SpaceX.

The theory lecture

Lecture · full

Why value moves

The complete discount-rate framework — the SDF, why valuations move on discount rates rather than growth, and where ESG enters, with the empirical answers revealed.

Pre-class prep: webpage · PDF
Reading list

What to read

The asset-pricing papers behind the lecture — Cochrane, Pástor–Stambaugh–Taylor, Bolton–Kacperczyk, Pedersen — with free working-paper links where available.

The valuation practice

Case · full

Valuing SpaceX

A real, just-listed company valued from the ground up — a sum-of-the-parts DCF with ESG in the discount rate, the reverse-DCF on the $1.45tn moonshot, and the governance overlay.

Pre-class prep: webpage · PDF
Written readings

Read at your own pace

Plain-English written walkthroughs of both halves — the discount-rate theory and the full SpaceX valuation — in flowing prose, ideal for revision.

Test yourself

Practice · self-test

20-question revision quiz

An interactive self-test across the discount-rate theory and the SpaceX valuation — pick an answer and see at once whether it's right, with a one-line explanation for every option. The questions reshuffle each time. This is practice for revision; it is separate from the graded assessment.