By
Borsgade
Aswath Damodaran, Professor of Finance at New York University, visits the podcast ‘Equity Mates’ to discuss everything valuation.
In this episode they cover: How Aswath introduces students to valuation at NYU – Key concepts of valuation including: price vs value, the four drivers of valuation, and probabilistic margins of safety. They also cover how Aswath advises beginners to approach valuation, growth in Big Tech and how Aswath thinks about valuing the Magnificent 7.
So when you think about an asset as a business, you got to understand the business. You have to understand what drives its growth and its profitability and its risk and bring them all into an assessment of value. Now we might call this a discounted cash flow valuation, but remember valuation predates discounted cash flow valuation.
Discounted cash flow valuation is a tool that has been developed primarily in the last 87 years, 1937 John Williams book is the first one one that described the mechanics of discounted cash flow valuation. But I think of intrinsic valuation as predating discounted cash flow valuation.
Share the news
The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk
In this interview with our Norwegian friends over at Norges Bank, Stanley Druckenmiller explains how he learned to bet (really) big when the odds are heavily in your favor and how he is using a strategy of invest and investigate. Both inspired by his old colleague George Soros.
In this interview, Mohnish Pabrai outlines his full investment strategy, emphasizing the importance of staying within his “circle of competence” and drawing lessons from seasoned investors.
In a recent interview, Howard Marks argues that economic forecasting offers little value to investors. He notes that even top investors like Warren Buffett steer clear of relying on economic or market predictions when making decisions.
In his latest article, NYU professor Aswath Damodaran explores the common challenges faced by three types of entities that have access to assured funding: corporate venture capital, sovereign wealth funds, and green energy investments.
