Aswath Damodaran

Aswath Damodaran
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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 Unofficial fan audio feed — not affiliated with or endorsed by the original creator. All content belongs to its respective owner.

  1. 2h ago

    Session 26: The Grand Finale'

    In this, the final session of the class, we started with using Dante’s Inferno to illustrate layers of valuation hell, with different valuation sins putting you deeper and deeper in that space. We then used your findings on the project to review the basics of intrinsic valuation, pricing and real options. Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/valclosespr22.pdf Class project summary: http://www.stern.nyu.edu/~adamodar/pc/eqrec/spr22.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

    Session 26: The Grand Finale'

  2. 6h ago

    Data Update 6 for 2018: The Cost of Capital

    The Cost of Capital is the Swiss Army Knife of corporate finance, used in multiple places in corporate finance and valuation for different reasons. In this session, I look at why it is dangerous to view the cost of capital as the cost of raising funds, and why it is better framed as an opportunity cost, i.e., a return that I can make on returns of equivalent risk. I also look at the costs of capital for US and global firms, looking at the typical firm, sector averages and the entire distribution.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/dataupdate6for2018.pdfBlog Post: https://aswathdamodaran.blogspot.in/2018/01/january-2018-data-update-6-cost-of.htmlSpreadsheet: http://www.stern.nyu.edu/~adamodar/pc/wacccalculator.xlsData:1. Cost of capital, by sector - US (http://www.stern.nyu.edu/~adamodar/pc/datasets/wacc.xls)2. Cost of capital, by sector - Global (http://www.stern.nyu.edu/~adamodar/pc/datasets/waccGlobal.xls)Paper: The Cost of Capital - The Swiss Army Knife of Finance (http://people.stern.nyu.edu/adamodar/pdfiles/papers/costofcapital.pdf) Learn more about your ad choices. Visit megaphone.fm/adchoices

    Data Update 6 for 2018: The Cost of Capital

  3. 9h ago

    January 2018 Data Post 5: Country Risk Update

    As globalization becomes the norm for both companies and countries, we are faced with a challenge. Even developed market companies derive portions of their revenues from emerging markets, drawn to them by their higher growth. The risk in these emerging markets is higher than in developed markets and they only vehicle to convey this risk into the valuation is the equity risk premium. In the session, I update my estimates for country equity risk premiums and explain how to bring them into a company valuation.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/dataupdate5for2018.pdfBlog Post: https://aswathdamodaran.blogspot.in/2018/01/january-2018-data-update-5-country-risk.htmlData:1. Country Risk Premiums (Default Spreads, Ratings, ERP): http://www.stern.nyu.edu/~adamodar/pc/blog/CountryRiskAll.xlsx2. My fully country risk premium dataset: http://www.stern.nyu.edu/~adamodar/pc/datasets/ctryprem.xls3. Spreadsheet to compute company equity risk premiums: http://www.stern.nyu.edu/~adamodar/pc/CompanyERP.xls Learn more about your ad choices. Visit megaphone.fm/adchoices

    January 2018 Data Post 5: Country Risk Update

  4. 13h ago

    An Inflation Follow Up: Company Exposure to Inflation's Effects

    In this session, I look at how inflation can affect the value of a company, through its value drivers, from growth to margins to reinvestment and risk. I argue that companies with significant pricing power, with low input costs and investments of short duration and high flexibility will have the strongest ability to pass inflation into their cashflows. The capacity to generate high and stable earnings, with little default risk, will determine how inflation affects discount rates. As a consequence, the effect of inflation, and in particular, unexpected inflation, can vary widely across companies. Looking at the last nine decades of US stock returns, I note that small cap and low price to book stocks have done much better during periods of high inflation. Focusing in on 2022, when inflation has been the lead story driving markets, I document that small cap and low price to book stocks have outperformed markets, just as in the 1970s. Adding on measures for risk and cash flows, it looks like less risky and higher cash flow (operating and dividend) have also outperformed the market. While value investors will view this as vindication, after a decade in the wilderness, it is still too early to draw the conclusion that value is back.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/blog/InflationCompanyValue.pdfBlog Post: https://aswathdamodaran.blogspot.com/2022/05/a-follow-up-on-inflation-disparate.html Learn more about your ad choices. Visit megaphone.fm/adchoices

    An Inflation Follow Up: Company Exposure to Inflation's Effects

  5. 17h ago

    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 ludicrous notion of a global risk free rate to the absurdity of discounting peso cash flows at a dollar cost of capital., currency confusions abound. I use three big misconceptions about currencies to update my currency risk free rates and fundamentals.Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/dataupdate4for2018.pdfBlog Post: https://aswathdamodaran.blogspot.in/2018/01/january-2018-data-update-4-currency.htmlDatasets:Govt Bond based risk free rates: http://www.stern.nyu.edu/~adamodar/pc/blog/currencyriskfree2018.xlsxDifferential inflation risk free rates: http://www.stern.nyu.edu/~adamodar/pc/blog/CountryInflationRates.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

    January 2018 Data Update 4: The Currency Conundrum

  6. 20h ago

    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 facile to attribute this to a long overdue correction and I argue that the answer may lie in risk capital, i.e., the capital that is invested in the riskiest assets. Through history, risk capital has ebbed and flowed, with the ebbs and flows affecting risk premiums, the gaps between price and value and the survival/failure of the youngest, riskiest businesses. After a decade, during which risk capital has been plentiful and easily accessible, and following a boom year in 2021, risk capital is retreating in 2022. The question for investors is whether this is temporary, as it was in 2020, in which case you should see risky assets rebounding, or whether it a longer term retrenchment.Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/blog/RiskCapital2022.pdfBlog Post: Equity Risk Premium on July 1, 2022: https://www.stern.nyu.edu/~adamodar/pc/implprem/ERPJuly22.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

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

  7. 1d ago

    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 session, I look at the major changes in the tax reform package and how these changes will play out in cash flows, growth, cost of capital and value. I estimate both an overall value effect and redistributive implications, i.e., sectors that will benefit the most and face the most pain from the changes. Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/dataupdate3for2018.pdfSpreadsheet for value calculation: http://www.stern.nyu.edu/~adamodar/pc/blog/taxreformeffect.xlsaxSector tax effects: http://www.stern.nyu.edu/~adamodar/pc/blog/SectorTaxEffect.xlsaxBlog Post: https://aswathdamodaran.blogspot.com/2018/01/january-2018-data-update-3-taxing.html Learn more about your ad choices. Visit megaphone.fm/adchoices

    Data Update 3: Taxing Questions

  8. 1d ago

    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 has become a key component of investing. In this session, I provide my semi-annual update on country risk, by first looking at the drivers of country risk (political freedom, legal rights, exposure to violence, extent of corruption) and then examining sovereign default risk (ratings and CDS) and equity risk premiums in markets. On every dimension, it has been an eventful six months as risk premiums have risen across the board, and coupled with higher riskfree rates (across most currencies) have pushed up the median costs of capital for US and global companies by 3-3.5%, almost unprecedented for a half year period. Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/blog/CountryRisk2022.pdfBlog Post: https://aswathdamodaran.blogspot.com/2022/07/country-risk-2022-mid-year-update.htmlPaper (for download; it is boring and long, but it covers all the bases): https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4161010 Datasets1. Corruption, Legal Rights and Peace Scores, by country: https://www.stern.nyu.edu/~adamodar/pc/blog/CountryRiskJuly22.xlsx2. Default spreads and Equity Risk Premiums, by country: https://www.stern.nyu.edu/~adamodar/pc/datasets/ctrypremJuly22.xlsx Learn more about your ad choices. Visit megaphone.fm/adchoices

    Country Risk: A Mid-year Update for 2022
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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 Unofficial fan audio feed — not affiliated with or endorsed by the original creator. All content belongs to its respective owner.

Information

  • Creator
    Aswath Damodaran
  • Years Active
    2026
  • Episodes
    825
  • Rating
    Clean

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