Why is Aswath Damodaran hated by IBankers?
I’ve just landed my first job out of uni and it’s not in IBD, but I have always been fascinated by valuations
And i feel there is no one else in the world who can decode the DCF or other relative comp methods better than NYU Stern Prof. Aswath Damodaran… let me tell you I’m not a blind follower of the professor… he makes sense in most of his lectures and gives practical ideas
Any IBanker I confront quotes “Oh he is just a Professor!!!, that’s not how a DCF is done!!”
My personal belief is that as a retail investor… the wisdom of buffet, munger, graham and valuations taught by maubbassin and damodaran will definitely make you a better investor…
Can someone jump.. I want to know why am I incorrect… Thanks
nobody cares
industry practices often deviate from academic theory a lot... I wouldn't say people in IBD hate Damodaran; they probably see the wisdom in his opinions, but are aware that it's not practical to implement. IB is a sales industry at heart—throw whatever you need to in your model such that it's acceptable by industry norms and satisfies your client.
because he's treats valuation as a science whereas bankers treat it as an art (i.e. something is worth what people are willing to pay for).
Damodaran probably won't advise 30m for Picasso but bankers will advise it because that's where the fees are
I agree on this.. he would come up with a well defined number with decimals … where as practitioners use a range of values…
The title of this post suggests that this is a common, verifiable truth such as "why do most people in large liberal cities hate Trump" lmao.
I never really heard anyone hating Damodaran? He is probably the most influential corp. fin professor and tons of professors at different school guiding students towards his material. He also puts out all of his content for free. Overall great guy.
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