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Narrative and Numbers

The Value of Stories in Business
Book Hero Magic crafted this summary to help describe this book. While it's new and still learning, it may not be perfect - your feedback is welcome! Summary
In Narrative and Numbers, Aswath Damodaran explores how the power of storytelling complements financial analysis to drive corporate value. Combining case studies of companies like Uber, Twitter, Facebook, Apple, Amazon, and Vale, he shows that successful businesses blend compelling narratives with rigorous number-crunching. Damodaran explains how narratives help investors understand valuations, how to weave stories around numbers, and how to test the credibility of these stories to create and sustain real value.
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Format: Hardback
$5699
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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?

This book is ideal for business professionals, investors, entrepreneurs, and students interested in corporate valuation, financial modelling, and persuasive business communication. It appeals especially to those wanting to enhance their financial expertise by mastering the art of narrative to complement numbers.

Book Hero thinking about 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.

Book Hero Magic formatted this description to make it easier to read. While it's new and still learning, it may not be perfect - your feedback is welcome! Description

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 author’s caution against bias in qualitative analysis is also noted.

Book Hero reading reviews

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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