Born in 1957 in Chennai, India, Damodaran received his MBA and Ph.D. from the University of California, Los Angeles. He joined NYU’s Stern School of Business in 1986 and has since become one of the most respected voices in finance.
Key Contributions
Damodaran’s work focuses on the practical applications of finance, making complex concepts accessible to a broad audience. Some of his notable contributions include:
- Valuation frameworks: Damodaran has developed and refined various valuation models, including the Discounted Cash Flow (DCF) model, the Comparable Companies Analysis and the Precedent Transactions Analysis.
- Cost of capital: His work on estimating the cost of capital, including the Weighted Average Cost of Capital (WACC), has become a standard reference for finance professionals.
- Country risk premiums: Damodaran’s research on country risk premiums has helped investors better understand and quantify the risks associated with investing in emerging markets.
- Valuation of intangibles: He has written extensively on the valuation of intangible assets, such as brand name, patents and trademarks.
Impact and Legacy
Aswath Damodaran’s work has had a profound impact on the field of finance, influencing:
- Investment analysis: His valuation frameworks and cost of capital estimates are widely used by analysts and investors.
- Corporate finance: Damodaran’s research has shaped the way companies approach capital budgeting, financing and risk management.
- Academia: His teaching and research have inspired a new generation of finance scholars and practitioners.
Aswath Damodaran’s contributions to finance have been instrumental in shaping the way we think about valuation, corporate finance and risk management. His work continues to inspire and educate finance professionals, investors and students around the world. By understanding and applying his insights, we can make more informed decisions and navigate the complex world of finance with greater confidence.
Books by Damodaran
Damodaran has authored several influential books, including:
- Damodaran on Valuation (1994) – A comprehensive guide to valuation techniques and applications.
- Applied Corporate Finance (1999) – A textbook that bridges the gap between theory and practice in corporate finance.
- The Dark Side of Valuation (2009) – A critical examination of valuation practices and pitfalls.
Free Online Investing Lessons
Damodaran makes most of his investing lessons available online either through his YouTube channel or his personal website.
Winchell House 
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