What is valuation Aswath Damodaran?

Aswath Damodaran. 5. Approaches to Valuation. ■ Intrinsic valuation, relates the value of an asset to its intrinsic. characteristics: its capacity to generate cash flows and the risk in the cash flows.

Why is Aswath Damodaran famous?

Known as the “Dean of Valuation” due to his expertise in that subject, Damodaran is best known as the author of several widely used academic and practitioner texts on Valuation, Corporate Finance and Investment Management; he is widely quoted on the subject of valuation, with “a great reputation as a teacher and …

What is corporate finance Damodaran?

Corporate finance, as I define it, covers every decision a firm makes that may affect its finances. The fourth is the dividend decision, which relates to how much a business should reinvest back into operations and how much should be returned to the owners.

What is investment principle in corporate finance?

The investment principle specifies that businesses invest only in projects that yield a return that exceeds the hurdle rate. The financing principle suggests that the right financing mix for a firm is one that maximizes the value of the investments made. These principles are the core for corporate finance.

How much is YouTube worth now?

How much is YouTube worth in 2020? Considering billions it earns in ad revenue and massive year-over-year growth, it is estimated that YouTube is worth around $170 billion as a separate company.

What does Aswath Damodaran teach at NYU?

Aswath Damodaran holds the Kerschner Family Chair in Finance Education and is Professor of Finance at New York University Stern School of Business. Before coming to Stern, he also lectured in Finance at the University of California, Berkeley.

What is the importance of corporate finance?

Corporate finance is important for planning finances, capital raising, investments, and risk management and financial monitoring. If you assume that corporate finance is a function unconnected to the real operations of a company, you’d better think twice.

What is the most important aspect of corporate finance?

Capital investing is the most crucial aspect of corporate financing. By budgeting capital to the right projects and investments, the organization identifies where it can make money and where it is spending money.

What are the various investment financing and dividend decisions in corporate finance?

There are four main financial decisions- Capital Budgeting or Long term Investment decision (Application of funds), Capital Structure or Financing decision (Procurement of funds), Dividend decision (Distribution of funds) and Working Capital Management Decision in order to accomplish goal of the firm viz., to maximize …

Why is corporate finance important to managers?

Why is corporate finance important to all managers? Corporate finance provides managers the ability to identify and select strategies, and projects. Additionally it allows for managers to forecast funding requirements for their company, and creates the ability to plan strategies for acquiring funds.