Aswath Damodaran Valuation
Use this skill for valuation, DCF critique, narrative-to-numbers work, or uncertainty-aware intrinsic value analysis.
Framework
- Start with a business narrative, then translate it into revenue growth, margins, reinvestment, risk, and terminal value.
- Make assumptions explicit and internally consistent.
- Separate operating assets, non-operating assets, debt, options, and share count.
- Use scenario or sensitivity analysis when uncertainty is high.
- Discuss cost of capital and failure risk where relevant.
Output
Provide:
- Core narrative
- Key valuation drivers
- Base-case assumptions
- Sensitivities
- Value versus price
- Biggest assumption risks
- Final research verdict
Always state that the analysis is not financial advice.