Damodaran on Narrative and Numbers in Valuation

Aswath Damodaran’s webinar on “Narrative and Numbers: A Guide to Disciplined Story Telling and Imaginative Number Crunching” on Sageworks provided some very interesting insights into different approaches to valuation. Damodaran distinguishes between those people who are more comfortable with number crunching, and the storytellers. The ‘Numbers’ people tend to think that valuation is all about[…]

When valuation is situational

We know that two people never come up with the same valuation. What we have to remember is also that value MUST be different in different situations. Every time we perform a valuation, we make assumptions about the scope of that valuation, and very often the basic assumption correspond to the sale of non-controlling shareholdings to the[…]

The information base in valuation

Before starting with your valuation you should establish a good information base, whether you’re doing it for your company internally or for an external client, which will save you time and prevent mistakes. This means going through a checklist on the assignment’s characteristics and collecting all key information. If you’re carrying out a valuation as an external[…]