WHO IS ASWATH DAMODARAN?

Aswath Damodaran is a professor of finance at the Stern School of Business at New York University. He holds a Ph.D. in Finance from the University of California, Los Angeles and an MBA from the Indian Institute of Management. He is an expert in the field of valuation, widely recognized as “the dean of valuation”, and has authored numerous books, academic articles, and data sets on the principles of valuation to help investors understand the subject. 

Aswath is not only a famous professor at NYU, but has become a trailblazer for education accessibility by making all of his teachings including his MBA courses at NYU available online for free. This exceptional initiative by Aswath is a valuable resource for all investors looking to improve their stock picking abilities and access high quality education from one of the world’s top finance professor.

Aswath describes himself as “a teacher first, who also happens to love untangling the puzzles of corporate finance and valuation, and writing about my experiences.”

For those interested to learn more about the master of valuation, make sure to check out the popular interview he did with William Green on Richer, Wiser, Happier. Aswath shares more about his background, his beliefs about markets, and his best advice on how to be successful in investing and life. In this interview, Aswath also discusses the importance of having an investment philosophy and how to identify a philosophy that best suits you.

Figuring out what your investment philosophy is can be challenging, but don’t worry, as I recently wrote an article all about how to figure out what yours is, which was inspired by my conversation with Aswath on the Millennial Investing podcast.

WHY IS ASWATH DAMODARAN FAMOUS?

Aswath Damodaran is famous for his work in the field of valuation. He has written several books on the subject, including “Investment Valuation,” “The Dark Side of Valuation,” and “Narrative and Numbers.” He is also a popular speaker and has given talks on valuation and finance around the world. His expertise in the field has earned him the nickname “the Dean of Valuation.” 

Aswath’s expertise in stock valuation was showcased on the Millennial Investing podcast, where he shared his knowledge and gave the listeners a masterclass on stock valuation in episode MI249.

For those investors wanting to understand the basics of stock valuation better, you might also find our article on calculating a stock’s intrinsic value quite useful. It provides an in-depth explanation of this vital concept, helping you develop a solid foundation in stock valuation. 

Additionally, if you are a novice investor looking for guidance on how to start investing in stocks, our detailed Guide to Investing in Stocks for Beginners is an excellent resource that covers everything you need to know to begin your investing journey with confidence.

EQUITY RISK PREMIUM

Aswath Damodaran has been an outspoken critic of the traditional approach to determining the equity risk premium, which is a key component in valuing stocks. He argues that the historical approach to determining the equity risk premium is flawed and that investors should focus on the future rather than the past. He has developed his own model for determining the equity risk premium based on the expected growth rate of earnings and the expected return on equity.

If you’re interested in learning more, Aswath’s website has numerous articles and datasets on the topic among many others that are necessary for valuing companies.

BEST ASWATH DAMODARAN BOOKS

Aswath Damodaran has written several books on valuation, including “Investment Valuation,” “The Dark Side of Valuation,” “The Little Book of Valuation,” and “Narrative and Numbers.” These books are widely regarded as some of the best resources available on the subject of valuation. 

In a recent episode of the We Study Billionaires podcast, host Clay Finck provided a detailed review of Aswath Damodaran’s renowned book, “The Little Book of Valuation”. Clay’s in-depth analysis covers Aswath’s primary methods for valuing a company, the five fundamental inputs required for valuing any company, and how to establish an appropriate growth rate in valuations. Additionally, the episode highlights the differences between valuing growth-oriented companies versus more mature ones, as well as the unique adjustments necessary for valuing firms with substantial intangible assets, such as many technology companies today. Whether you’re an experienced investor or new to the field, this episode is a must-listen for those seeking to expand their understanding of valuation and improve their investment decision-making skills.

He has also written two books on corporate finance, including “Corporate Finance: Theory and Practice, and Applied Corporate Finance: A User’s Manual”. In addition to Aswath’s books, he also maintains a blog where he shares his thoughts on specific stocks, his valuation of companies and other finance-related topics.

FREQUENTLY ASKED QUESTIONS ABOUT ASWATH DAMODARAN