Tag: valuation

Aswath Damodaran on inflation, valuation and the future of ESG

Invest Like The Best recently featured the dean of valuation, Aswath Damodaran. Great conversation covering: -The importance of stories when valuing companies -Why inflation is causing havoc in today's market -His contrarian thought on the future of ESG Here are my notes: 1. Unexpected VS Expected Inflation You can plan for expected inflation. But unexpected inflation is deadly. You don't have time to build it ...

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How Growth, Return on Capital, and Discount Rate Affect Valuation

Nobody will know where interest rates are headed, but it is important to appreciate the relationship between the discount rate and long-duration assets. In other words, we should be mindful that an increase in interest rates will bring down the valuation of companies that are investing heavily today for higher future cash flows tomorrow. It is also important to bear in mind that for most ...

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