Organised by the Innovation Investing Special Interest Group.
In this session, Aswath Damodaran looks at how uncertainty is embedded in all valuations, although the amount of uncertainty faced will vary across companies, countries and across time. Aswath will categorise uncertainty into groups, estimation versus economic, micro versus macro and discrete versus continuous, and argue that each grouping needs a different response.
Aswath suggests that there is fundamentally nothing different about valuing young companies, as opposed to more mature ones, other than the fact that past data cannot be extrapolated (the lazy financial modeling that masquerades as valuation in practice) and that a lot more uncertainty can be faced about the future.
Finally, he will develop tools that can be used to get a handle on uncertainty and deal with it better in valuation, especially in the context of valuing young companies.Where recordings are made, these are a member benefit that are accessed through the member-only platform, CFA UK Discover.
Event: 17:30 - 18:30
CPD Points: 1.00
Aswath Damodaran, Professor of Finance, Stern School of Business at New York University.
Aswath Damodaran is the Kerschner Family Chair Professor of Finance at the Stern School of Business at New York University. He teaches the corporate finance and valuation courses in the MBA program. He received his MBA and Ph.D from the University of California at Los Angeles. His research interests lie in valuation, portfolio management and applied corporate finance. He has published in the Journal of Financial and Quantitative Analysis, the Journal of Finance, the Journal of Financial Economics and the Review of Financial Studies.
He has written four books on valuation (Damodaran on Valuation, Investment Valuation, The Dark Side of Valuation, The Little Book of Valuation), and two on corporate finance (Corporate Finance: Theory and Practice, Applied Corporate Finance: A User’s Manual). He has co-edited a book on investment management with Peter Bernstein (Investment Management), has a book on investment philosophies (Investment Philosophies) and one on “can’t miss” investment strategies, titled Investment Fables.
In 2012, Aswath was chosen as one of the top ten business school professors in the world by Poets and Quants, and his blog, Musings on Markets, was selected by the Times of London as one of the top ten stock market blogs in the world.Click here to view our event terms and conditions.