Aswath Damodaran

Aswath Damodaran
Damodaran in 2023
Born	Aswath Damodaran (1957-09-23) September 23, 1957 (age 68) Chennai, India
Alma mater	Loyola College, Chennai (B.Com.) IIM Bangalore (PGDM) UCLA Anderson School of Management (MBA, PhD)
Occupations	Professor, author
Employer	New York University Stern School of Business
Known for	Finance and investment research
Awards	Richard L. Rosenthal Award for Innovation in Investment Management and Corporate Finance Herbert Simon Award
Website	Damodaran Online

Aswath Damodaran (born 24 September 1957) ^[1] is an Indian-American academic who currently serves as Kerschner Family Chair in Finance Education and is also Professor of Finance at Stern School of Business of New York University. ^[2]

He is widely known as the author of several widely used academic and practitioner texts on valuation, corporate finance and investment management. ^[3]

Contributions to Valuation

Damodaran is a prominent advocate of Discounted Cash Flow (DCF) analysis. He emphasizes that the value of an asset is the present value of its expected future cash flows, adjusted for the risk that those cash flows will not be realized.

The basic DCF formula used in his teaching is:

${\displaystyle {\text{Value}}=\sum _{t=1}^{n}{\frac {CF_{t}}{(1+r)^{t}}}+{\frac {\text{Terminal Value}}{(1+r)^{n}}}}$

where:

• ${\displaystyle CF_{t}}$ is the free cash flow in period $t$;
• ${\displaystyle r}$ is the cost of capital or discount rate reflecting the risk profile;
• ${\displaystyle n}$ is the life of the asset.

Early life and education

He was born in Chennai, India. ^[4] Damodaran received a Bachelor of Commerce in Accounting from Loyola College, Chennai (1977) and a post graduate diploma in management (equivalent to an MBA) from the Indian Institute of Management Bangalore (1979). ^[5] He later earned both an MBA (1981) and a PhD (1985) from the UCLA Anderson School of Management.

Career

Damodaran has been a professor at NYU Stern School of Business since 1986. He also teaches in the TRIUM Global Executive MBA Program and provides comprehensive data for valuation purposes to the public. ^[6] From 1984 to 1986, he was a visiting lecturer at the University of California, Berkeley.

Works

Selected Books

• Damodaran on Valuation: Security Analysis for Investment and Corporate Finance (1994)
• Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (3rd Edition 2012)
• Corporate Finance: Theory and Practice (1996)
• Applied Corporate Finance: A User's Manual (4th Edition 2014)
• The Dark Side of Valuation: Valuing Old Tech, New Tech, and New Economy Companies (2nd Edition 2009)
• Investment Philosophies: Successful Strategies and the Investors Who Made Them Work (2003)
• Investment Fables: Exposing the Myths of "Can't Miss" Investment Strategies (2004)
• Strategic Risk Taking: A Framework For Risk Management (2007)
• The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit (2011)
• Narrative and Numbers: The Value of Stories in Business (2017)
• The Corporate Life Cycle: Managing, Valuation and Investing Implications (2024)

See also

• Cost-benefit analysis
• New Yorkers in journalism
• Price-to-earnings ratio
• Equity valuation

References

1. Damodaran, Aswath, Library of Congress
2. Education, -Kerschner Family Chair in Finance. "NYU Stern - Aswath Damodaran - Kerschner Family Chair in Finance Education". www.stern.nyu.edu. Retrieved 30 January 2024.
3. Data Page, Damodaran Data Page, New York University
4. "Aswath Damodaran — Social Science Encyclopedia". Social Science Encyclopedia. Retrieved 30 January 2024.
5. Aswath Damodaran IIM Bangalore Archived 2 May 2011 at the Wayback Machine
6. TRIUM Global Executive MBA Program

External links

• Damodaran Online (Official Website)
• Biography, Homepage
• Musings on Markets (Official Blog)
• Author Page at SSRN
• Author Page at ScientificCommons
• Works by or about Aswath Damodaran at Internet Archive
• Aswath Damodaran publications indexed by Google Scholar