Aswath Damodaran | |
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Born | Aswath Damodaran September 23, 1957 Chennai, India |
Alma mater | Loyola College, Chennai (B.Com.) IIM Bangalore (Post Graduate Diploma in Management) UCLA Anderson School of Management (M.B.A. & Ph.D.) |
Occupation(s) | Professor, author |
Employer | New York University Stern School of Business |
Known for | Finance and Investment research |
Parent | Damodaran Mudaliyar |
Awards | Richard L. Rosenthal Award for Innovation in Investment Management and Corporate Finance Herbert Simon Award |
Website | Damodaran Online · blog |
Aswath Damodaran (born 24 September 1957), [1] is a Professor of Finance at the Stern School of Business at New York University (Kerschner Family Chair in Finance Education), where he teaches corporate finance and equity valuation.
Damodaran is best known as the author of several widely used academic and practitioner texts on Valuation, Corporate Finance and Investment Management as well as provider of comprehensive data for valuation purposes. [2] He has written several books on equity valuation, as well as on corporate finance and investments. [3]
He was born in Chennai, India. [4] [5] He holds M.B.A and Ph.D. degrees from the UCLA Anderson, along with a B.Com. in Accounting from Loyola College, Chennai and a P.G.D.M. from the Indian Institute of Management Bangalore. [3] [6] He served as visiting lecturer at the University of California, Berkeley from 1984 to 1986, and has been a professor at New York University's Stern School of Business since 1986, where he teaches corporate finance and equity valuation.
Damodaran also teaches on the TRIUM Global Executive MBA Program, an alliance of NYU Stern, the London School of Economics and HEC School of Management. [7] He also teaches the "Valuation" Open Enrollment program for Stern Executive Education. [8] Damodaran also teaches on the "Advanced Valuation" and "Corporate Finance" online certificates at NYU Stern. [9]
Finance refers to monetary resources and to the study and discipline of money, currency, assets and liabilities. As a subject of study, it is related to but distinct from economics, which is the study of the production, distribution, and consumption of goods and services. Based on the scope of financial activities in financial systems, the discipline can be divided into personal, corporate, and public finance.
Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade". Its concern is thus the interrelation of financial variables, such as share prices, interest rates and exchange rates, as opposed to those concerning the real economy. It has two main areas of focus: asset pricing and corporate finance; the first being the perspective of providers of capital, i.e. investors, and the second of users of capital. It thus provides the theoretical underpinning for much of finance.
Real options valuation, also often termed real options analysis, applies option valuation techniques to capital budgeting decisions. A real option itself, is the right—but not the obligation—to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project. For example, real options valuation could examine the opportunity to invest in the expansion of a firm's factory and the alternative option to sell the factory.
In finance, valuation is the process of determining the value of a (potential) investment, asset, or security. Generally, there are three approaches taken, namely discounted cashflow valuation, relative valuation, and contingent claim valuation.
Return on capital (ROC), or return on invested capital (ROIC), is a ratio used in finance, valuation and accounting, as a measure of the profitability and value-creating potential of companies relative to the amount of capital invested by shareholders and other debtholders. It indicates how effective a company is at turning capital into profits.
Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Here various valuation techniques are used by financial market participants to determine the price they are willing to pay or receive to effect a sale of the business. In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, establish a formula for estimating the value of partners' ownership interest for buy-sell agreements, and many other business and legal purposes such as in shareholders deadlock, divorce litigation and estate contest.
Capital budgeting in corporate finance, corporate planning and accounting is an area of capital management that concerns the planning process used to determine whether an organization's long term capital investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization structures. It is the process of allocating resources for major capital, or investment, expenditures. An underlying goal, consistent with the overall approach in corporate finance, is to increase the value of the firm to the shareholders.
Financial modeling is the task of building an abstract representation of a real world financial situation. This is a mathematical model designed to represent the performance of a financial asset or portfolio of a business, project, or any other investment.
Valuation using discounted cash flows is a method of estimating the current value of a company based on projected future cash flows adjusted for the time value of money. The cash flows are made up of those within the “explicit” forecast period, together with a continuing or terminal value that represents the cash flow stream after the forecast period. In several contexts, DCF valuation is referred to as the "income approach".
Cash-flow return on investment (CFROI) is a valuation model that assumes the stock market sets prices based on cash flow, not on corporate performance and earnings.
The following outline is provided as an overview of and topical guide to finance:
TRIUM Global Executive MBA program is an alliance between NYU Stern School of Business, London School of Economics and Political Science (LSE), and HEC School of Management, Paris. TRIUM is ranked #2 in the world in the 2018 Financial Times EMBA rankings and #1 in the 2014 edition. It has also been ranked #1 in the world in the QS Global Joint Executive MBA Rankings every year for the past four years.
Dhananjay "Dan" Gode is a Clinical Associate Professor of Accounting, Taxation, and Business law at New York University Stern School of Business. He teaches courses in corporate financial accounting, and also teaches for the TRIUM Global Executive MBA Program, an alliance of NYU Stern, the London School of Economics and HEC School of Management.
New York University (NYU) Stern Global Programs offer three advanced degree programs in partnership with international schools.
In finance, a contingent claim is a derivative whose future payoff depends on the value of another “underlying” asset, or more generally, that is dependent on the realization of some uncertain future event. These are so named, since there is only a payoff under certain contingencies. Any derivative instrument that is not a contingent claim is called a forward commitment.
Corporate finance is the area of finance that deals with the sources of funding, and the capital structure of businesses, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to maximize or increase shareholder value.
In corporate finance, free cash flow to equity (FCFE) is a metric of how much cash can be distributed to the equity shareholders of the company as dividends or stock buybacks—after all expenses, reinvestments, and debt repayments are taken care of. It is also referred to as the levered free cash flow or the flow to equity (FTE). Whereas dividends are the cash flows actually paid to shareholders, the FCFE is the cash flow simply available to shareholders. The FCFE is usually calculated as a part of DCF or LBO modelling and valuation.
Investment Valuation: Tools and Techniques for Determining the Value of Any Asset is a textbook on valuation, corporate finance, and investment management by Aswath Damodaran. The text was initially published by John Wiley & Sons on October 11, 1995, and is now available in its third edition as a part of Wiley Finance series.
Kathleen Traynor DeRose is an American fintech expert and a finance professor. Her areas of special interest and expertise are asset and wealth management, financial technology and quantitative finance, and China's political economy and technology development.