In this Talks at Google session, Prof Aswath Damodaran of NYU Stern, often called the "Dean of Valuation", condenses his approach into four simple lessons:
- Valuation is not an extension of accounting. It forecasts the future rather than recording the past.
- Valuation is more than modelling. A good valuation needs a narrative that binds the numbers together.
- Value and price are different. Valuing a business is not the same as pricing it the way the market does.
- Luck matters. You can do everything right and still lose money, so humility is part of the craft.
It is an accessible starting point for business owners, investors and finance professionals who find valuation intimidating, and a useful reminder for practitioners of what valuation can and cannot do.