Valuation Aswath Damodaran www.damodaran.com Aswath Damodaran 1 Some Initial Thoughts " One hundred thousand lemmings cannot be wrong" Graffiti Aswath Damodaran 2 Misconceptions about Valuation Myth 1: A valuation is an objective search for “true” value • • Myth 2.: A good valuation provides a precise estimate of value • • Truth 1.1: All valuations are biased. The only questions are how much and in which direction. Truth 1.2: The direction and magnitude of the bias in your valuation…
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