[经管营销]12mythis in valuation.pdfVIP

Twelve Myths in Valuation Aswath Damodaran Aswath Damodaran 1 Why do valuation? One hundred thousand lemmings cannot be wrong Graffiti Aswath Damodaran 2 1. Valuation is a science that yields precise answers… n Reality 1: Valuations are always biased… • 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 is directly proportional to who pays you and how much you are paid. n Reality 2: Equity valuations are always imprecise but they are most valuable when they are most imprecise. • Truth 2.1: There are no precise valuations • Truth 2.2: The payoff to valuation is greatest when valuation is least precise. n Reality 3: Complex valuations do not yield better estimates of value. • Truth 3.1: One’s understanding of a valuation model is inversely proportional to the number of inputs required for the model. • Truth 3.2: Simpler valuation models do much better than complex ones. Aswath Damodaran 3 2. Valuation is complicated and there are hundreds of models out there… DISCOUNTED CASHFLOW VALUATI