Narrative and Numbers
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Narrative and Numbers
Book Hero Magic created this recommendation. While it's new and still learning, it may not be perfect - your feedback is welcome! IS THIS YOUR NEXT READ?
How to connect business value to story.
Aswath Damodaran, finance professor and experienced investor, argues that the power of story drives corporate value, adding substance to numbers and persuading even cautious investors to take risks. In business, there are the storytellers who spin compelling narratives and the number-crunchers who construct meaningful models and accounts. Both are essential to success, but only by combining the two, Damodaran argues, can a business deliver and sustain value.
How can a company that has never turned a profit have a multibillion dollar valuation? Why do some start-ups attract large investments while others do not? Aswath Damodaran, finance professor and experienced investor, argues that the power of story drives corporate value, adding substance to numbers and persuading even cautious investors to take risks.
In business, there are the storytellers who spin compelling narratives and the number-crunchers who construct meaningful models and accounts. Both are essential to success, but only by combining the two, Damodaran argues, can a business deliver and sustain value.
Through a range of case studies, Narrative and Numbers describes how storytellers can better incorporate and narrate numbers, and how number-crunchers can calculate more imaginative models that withstand scrutiny. Damodaran considers Uber's debut and how narrative is key to understanding different valuations. He investigates why Twitter and Facebook were valued in the billions of dollars at their public offerings, and why one (Twitter) has stagnated while the other (Facebook) has grown.
Damodaran also looks at more established business models such as Apple and Amazon to demonstrate how a company's history can both enrich and constrain its narrative. And through Vale, a global Brazil-based mining company, he shows the influence of external narrative, and how country, commodity, and currency can shape a company's story.
Narrative and Numbers reveals the benefits, challenges, and pitfalls of weaving narratives around numbers and how one can best test a story's plausibility.
Book Hero Magic summarised reviews for this book. While it's new and still learning, it may not be perfect - your feedback is welcome! HOW HAS THIS BEEN REVIEWED?
Expert reviewers praise Damodaran's groundbreaking fusion of storytelling with traditional valuation. They highlight the book's practical lessons on integrating qualitative narratives with quantitative analysis. Paul Johnson commends the book as a cornerstone for both valuation and business pitching, noting Damodaran's personal journey. Thomas E. Copeland appreciates the insightful, balanced case studies that make valuation accessible and engaging, while emphasising the need for both analytical rigour and narrative skill. The authorโs caution against bias in qualitative analysis is also noted.
Book Details
INFORMATION
ISBN: 9780231180481
Publisher: Columbia University Press
Format: Hardback
Date Published: 10 January 2017
Country: United States
Imprint: Columbia University Press
Illustration: 88 figures
Audience: Professional and scholarly
DIMENSIONS
Width: 152.0mm
Height: 229.0mm
Weight: 0g
Pages: 296
About the Author
Aswath Damodaran is the Kerschner Family Chair in Finance Education and professor of finance at New York University's Stern School of Business. He is the author of Applied Corporate Finance, Fourth Edition (2014), Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, Third Edition (2012), The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit (2011), and Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, Second Edition (2006).
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