Aswath Damodaran

Aswath Damodaran
  • 0.0 (0)
  • Entrepreneurship
  • Updated daily

I teach corporate finance, valuation and investment philosophies at the Stern School of Business at New York University. I have online versions of all three courses here, as well as other finance-related videos. 1. The Corporate Finance Online playlist has an introductory video and 36 sessions that cover all of corporate finance (at least as I see it). 2. The Valuation playlist has 25 sessions that cover valuation approaches, issues and questions.3. The Investment Philosophies playlist has sessions that cover different investment philosophies.4. The Accounting and Statistics playlists reflect my quirky and unorthodox introductions to two disciplines that are critical to my valuation and corporate finance classes.5. The Blog Posts playlist has sessions that go wit my blog posts and reflect my standing as a dabbler, rather than expert, in all things finance-related. If you need the supporting material for any of the classes, check the links below.Links:Corporate finance materials: http://www.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.htmlValuation materials: http://www.stern.nyu.edu/~adamodar/New_Home_Page/equity.htmlInvestment Philosophies: http://www.stern.nyu.edu/~adamodar/New_Home_Page/invphil.htmBooks: http://www.stern.nyu.edu/~adamodar/New_Home_Page/public.htmMy website: http://www.damodaran.com

  1. 1 hr ago

    Mean Reversion: Statistical Fact or Dangerous Delusion?

    Much of investing, especially contrarian, is built on the belief that things revert back to norms, either over time or in the cross section. Thus, when you argue that stocks are over priced at a PE of 25, because the historic average is 16, you are buying into mean reversion, just as you when you argue that a steel company trading at 6 times earnings is cheap, because the sector average is 12. While mean reversion is a powerful force, I argue that there is more nuance than we let on, that structural changes can lay waste to it and converting statistical significant to real money is difficult, using the Shiller PE as an illustrative example.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/MeanReversion.pdfPost: http://bit.ly/2bJzp6k Market timing spreadsheet: http://www.stern.nyu.edu/~adamodar/pc/blog/mkttimingCAPE.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

    Mean Reversion: Statistical Fact or Dangerous Delusion?

  2. 7 hr ago

    Good Intentions, Perverse Outcomes: The Impact of Impact Investing

    In impact investing, you invest not just for financial returns but to do good for society. Using that definition, impact investing has been part of investing through time, but in the last two decades, it has been formalized as an investing philosophy, with books, academic articles and entities tracking its growth. In this session, I start by looking at the forms that impact investing can take, from inclusionary (investing in "good"), to exclusionary (divesting "bad") to evangelist (Invest in "bad" and try to change behavior), how they are expected to work and the potential for perverse outcomes.I use impact investing directed at climate change to examine the impact, and find the following:(a) It has impacted fund flows, with more than $5 trillion invested in alternative energy in the last decade, and has succeeded in pressuring more than 1600 investment funds to divest fossil fuel assets.(b) Not surprisingly, there has been a pricing effect, with green energy companies gaining in pricing, but fossil fuel companies, after initial shocks, seem to have weathered the impact.(c) Publicly traded fossil fuel companies have seen a return of both revenues & profitability, but they are investing less in fossil fuels and returning more cash to their shareholders. Private equity and non-public energy companies have stepped into the void, and own larger slices of the fossil fuel business.(d) Most critically, impact investing has had little impact on oil consumption or our dependence on fossil fuels for energy.If the definition of insanity is doing the same thing over and over, expecting a different outcome, impact investing, as practiced now, is insane, but there is hope for it, if it comes back in a humbler, more modest form.Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/ImpactInvesting.pdfBlog Post: https://aswathdamodaran.blogspot.com/2023/10/good-intentions-perverse-outcomes.html Learn more about your ad choices. Visit megaphone.fm/adchoices

    Good Intentions, Perverse Outcomes: The Impact of Impact Investing

  3. 13 hr ago

    Superman and Stocks: It's not the cape (CAPE), it's the kryptonite (Cash Flow)

    Robert Shiller's variant on PE (CAPE) has become the most commonly used device that those who believe that the market is in bubble territory use to justify their argument. In this session, I give my jaundiced and biased perspective on CAPE and why focusing on it is costly, for most investors.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/Superman&Stocks.pdfBlog post: http://aswathdamodaran.blogspot.com/2016/08/superman-and-stocks-it-not-cape-cape-it.html Learn more about your ad choices. Visit megaphone.fm/adchoices

    Superman and Stocks: It's not the cape (CAPE), it's the kryptonite (Cash Flow)

  4. 19 hr ago

    A Tesla Revisit: Story Twists and Turns with Value Consequences

    If valuation is a craft, there is no better company to hone that craft on than Tesla. I have valued Tesla almost every year since 2013, and while I have been woefully wrong on occasion, I return to the scene of the crime, to do it again. I review my 2013 valuation of Tesla briefly, before looking at lessons learned in subsequent valuations (story stock in 2016, corporate teenage in 2019, trillion-dollar wonder in 2021 and back-to-earth in January 2023). I then look at what this year has brought for Tesla, both in the market (a soaring first half of 2023, followed by stumbles in the second half) as well as as news (earnings reports and news stories). I focus in on three big news stories - the price cuts, the much-debated advances in FSD and the Cybertruck, and use those stories to reframe the valuation of the company, breaking it down into four businesses (auto, energy, software and robotaxi). With pathways (optimistic, albeit plausible) pathways to success in each business, I estimate a value per share of about $180. Needless to say, you will disagree with me on almost every part of my story, but use the spreadsheet which is attached to make it your own. Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/TeslaOct2023.pdfBlog Post: https://aswathdamodaran.blogspot.com/2023/11/tesla-story-turns-and-twists.htmlValuation of Tesla: https://pages.stern.nyu.edu/~adamodar/pc/blog/Tesla2023OctDIY.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

    A Tesla Revisit: Story Twists and Turns with Value Consequences

  5. 1 day ago

    The Bonfire of Venture Capital: The Good, Bad and Ugly side of Cash Burn

    Cash burn refers to the phenomenon of companies, usually young start ups, burning through cash balances and new capital, as they lose money and reinvest more. In this session, I look at the what, why and so what of cash burn, when it is benign and when it can be malignant.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/CashBurn.pdfBlog Post: http://bit.ly/2brKRXq Learn more about your ad choices. Visit megaphone.fm/adchoices

    The Bonfire of Venture Capital: The Good, Bad and Ugly side of Cash Burn

  6. 1 day ago

    Country Equity Risk Premiums: Dataset support

    Learn more about your ad choices. Visit megaphone.fm/adchoices

    Country Equity Risk Premiums: Dataset support

  7. 1 day ago

    Introduction to Class

    This is a really short video (two and a half minutes) introducing the valuation class and laying out its broad themes. Learn more about your ad choices. Visit megaphone.fm/adchoices

    Introduction to Class

  8. 1 day ago

    Implied ERP: Dataset Support

    In this session, designed to support the implied ERP that I compute every month on my webpage, for the S&P 500.Spreadsheet:1. https://pages.stern.nyu.edu/~adamodar/pc/datasets/histimpl.xls Learn more about your ad choices. Visit megaphone.fm/adchoices

    Implied ERP: Dataset Support
See All (603)

About

I teach corporate finance, valuation and investment philosophies at the Stern School of Business at New York University. I have online versions of all three courses here, as well as other finance-related videos. 1. The Corporate Finance Online playlist has an introductory video and 36 sessions that cover all of corporate finance (at least as I see it). 2. The Valuation playlist has 25 sessions that cover valuation approaches, issues and questions.3. The Investment Philosophies playlist has sessions that cover different investment philosophies.4. The Accounting and Statistics playlists reflect my quirky and unorthodox introductions to two disciplines that are critical to my valuation and corporate finance classes.5. The Blog Posts playlist has sessions that go wit my blog posts and reflect my standing as a dabbler, rather than expert, in all things finance-related. If you need the supporting material for any of the classes, check the links below.Links:Corporate finance materials: http://www.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.htmlValuation materials: http://www.stern.nyu.edu/~adamodar/New_Home_Page/equity.htmlInvestment Philosophies: http://www.stern.nyu.edu/~adamodar/New_Home_Page/invphil.htmBooks: http://www.stern.nyu.edu/~adamodar/New_Home_Page/public.htmMy website: http://www.damodaran.com

Information

  • Creator
    Aswath Damodaran
  • Years Active
    2026
  • Episodes
    603
  • Rating
    Clean