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). He is well known as the author of several widely used academic and practitioner texts on Valuation, Corporate Finance and Investment Management; as well as a provider of comprehensive data for valuation purposes. [2]
Damodaran has been a professor at New York University's Stern School of Business, since 1986, focusing on [3] corporate finance and equity valuation. He is on the faculty of the TRIUM Global Executive MBA Program, an alliance of NYU Stern, the London School of Economics and HEC School of Management. [4] Other teaching includes the "Valuation" program for Stern Executive Education [5] as well as the "Advanced Valuation" and "Corporate Finance" online certificates at NYU Stern. [6] From 1984 to 1986 he was a visiting lecturer at the University of California, Berkeley.
He was born in Chennai, India. [7] [8] 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. [9] [10]
As outlined, Professor Damodaran has written several books on equity valuation, as well as on corporate finance and investments. [9]
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.
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 Leonard N. Stern School of Business is the business school of New York University, a private research university based in New York City. Founded as the School of Commerce, Accounts and Finance in 1900, the school received its current name in 1988.
A control premium is an amount that a buyer is sometimes willing to pay over the current market price of a publicly traded company in order to acquire a controlling share in that company.
Ingo Walter is a professor of finance, corporate governance and ethics as well as Vice Dean of Faculty at New York University's Stern School of Business.
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.
Jennifer N. Carpenter is an American finance academic best known for her pioneering research into executive stock options. Other interests include fund manager compensation, survivorship bias, corporate bonds, and option pricing. She has been published in numerous journals including the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, and the Journal of Business.
New York University (NYU) Stern Global Programs offer three advanced degree programs in partnership with international schools.
Dividend policy, in financial management and corporate finance, is concerned with the policies regarding dividends; more specifically paying a cash dividend in the present, as opposed to, presumably, paying an increased dividend at a later stage. Practical and theoretical considerations will inform this thinking.
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.
Ilya A. Strebulaev is a Russian- American financial economist, researcher, author, and speaker with expertise in venture capital, startups, and corporate innovation. He has been a professor at the Stanford Graduate School of Business since 2004. From 2018 to 2022 he was on the board of directors of Yandex, the Russian equivalent of Google.
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.