Professor Aswath Damodaran Enlightens the Students of IIM Lucknow with a Session on Valuation
The finance enthusiasts at the institute got an excellent opportunity to attend a lecture from the eminent professor on "Valuing young, high growth companies.
- (1888PressRelease) October 15, 2011 - In any valuation exercise, the first principles are more important than any model technique used.
These views were emphasized by Professor Aswath Damodaran while interacting with a group of second year students at IIM Lucknow. The finance enthusiasts at the institute got an excellent opportunity to attend a lecture from the eminent professor on "Valuing young, high growth companies".
Professor Damodaran, faculty in finance at Stern School of Business at New York University conducted this session through video conferencing facilities. A idol for every finance student especially when it comes to Corporate Finance, he is best known as an author of widely used academic and practitioner books, text on valuation and corporate finance. He also connects with students and practitioners around the globe using his blog, http://aswathdamodaran.blogspot.com/. With multitude of papers published in most of the prestigious journals and publications, he has also received awards for outstanding teaching at the NYU.
Starting the discussion with a brief of his career journey so far, Prof Damodaran introduced the students to various issues and pitfalls which occur during valuing a corporation. He discussed the core principles of valuation and their importance in the changing face of economies around the world. With paradigm shifts and the invent of newer models and techniques in valuation, he re-emphasized the fact that first principles need to be understood well and followed for a good valuation exercise.
Taking the discussion further, Professor talked about the differences one has to understand while valuing a young, high growth company as compared to a mature company. With lack of historical data availability for such firms, the valuation process involves a series of assumptions. By taking an example from his own work, he explained various ways in which the necessary assumptions can be made and used for the valuation.
The session was also attended by students from IIM Shillong and enthusiastic students from both sides took this opportunity to ask questions related to various aspects of valuation to the Professor. The session was concluded by a warm vote of thanks and a huge round of applause for the Professor from both the sides