Aswath Damodaran

January 2018 Data Update 4: The Currency Conundrum

There is no mangled nor misunderstood aspect of financial analysis than currencies. From the laziness of assuming that government bond rates are always risk free to the l

Risk Capital and Markets: A Temporary Retreat or Long term Retrenchment?

In the first six months of this year, stock, bond and collectible markets have been upended, with the riskiest investments within each class being damaged the most. It is

Data Update 3: Taxing Questions

Taxes always matter, but this year, they matter more than most because the US tax code has been changed in significant ways, especially for corporate taxes. In this sessi

Country Risk: A Mid-year Update for 2022

As investors and businesses look beyond domestic markets, assessing the riskiness of the countries that they invest in, and charging an appropriate amount for that risk h

Data Update 2 for 2018: The (Continued) Resilience of US Equities

US equities had a very good year in 2018, delivering a return of 21.65% for the year (with price appreciation built in). In this session, I put those returns in historica

Session 10: More on financial mix and type

In this session, I continue with the discussion of the right financing mix for a firm, before developing a framework for finding the right financing type for a firm.Slide

Data Update 1 for 2018: The Numbers don't lie, or do they?

I collect raw data (accounting & market) for all publicly traded companies at the start of every year and summarize it on my web site. This is the first of a series of po

Session 1B: Intrinsic Valuation - Big Picture

In this session (second half of morning session, day 1), I presented big picture valuations of three companies, and talked about the process of getting the inputs to valu

Bitcoin Blowback: Back to the Drawing Board?

My contention that Bitcoin is more currency than asset and that it cannot be valued provoked reaction, some reasoned and some not. While I continue to believe that Bitcoi

Session 2A: Valuation Inputs - Discount Rates

In this session (first half of afternoon session, day 1), I looked at how best to estimate risk free rates in different currencies and the fundamentals that determine rel

The Bitcoin Boom: Asset, Commodity, Currency or Collectible?

As the Bitcoin price boom continues, the big question has become whether it is over valued. In the session, I argue that the question is unanswerable, because Bitcoin is

Session 2B: Valuation Inputs - Equity Risk Premiums, Growth Rates and Terminal Value

In this session (second half of afternoon session, day 1), I started with an assessment of equity risk premiums before examining the fundamentals that determine growth an

Loss Leader or Value Creator? Breaking down Amazon Prime

I am an Amazon Prime member and I never cease to be amazed at the value that I get for the $99 that I pay as a membership fee. In addition to free shipping, I get access

Session 3A: Loose Ends in Valuation

In this session (first half of morning session, day 2), I started on the loose ends in valuation with an evaluation of how to deal with cash held by a business, how to va

Tax Reform: Promise of Plenty or Poisoned Chalice?

Tax reform proposals always start with claims that they will make the tax code fairer and simpler, but they almost always end up doing the opposite. I take a look at its

Session 3B: Valuing Intangible Assets, Control and Young Companies

In this session (second half of morning session, day 2), I started with a quick discussion of the values of brand names and franchise value and an analysis of the expecte

Tesla: A Disruptive Force with a Debt Problem?

Tesla has been a bright star in the investing universe for much of the last decade. It's rise in market capitalization, now higher than that of GM or Ford, can be traced

Session 1A: Introduction and Valuation Themes

In this session (first half of morning session, day 1), I provide a rationale for why I do valuation and then list out the broad themes in valuation: that it is a craft,

Crypto Currency: Hope, Hype and Hoopla!

If you define success as a surging market price, crypto currencies have been incredibly successful, with Bitcoin and Ether leading the way. However, viewed as currencies,

Session 4B: More on Story Telling and Pricing

In this session (second half of the afternoon session, day 2), I spent some time using my Uber valuation in June 2014 to illustrate the link between stories and numbers,