26th March, 2021
XLRI PGDM (GM), in association with Kautilya Consult Club recently organized an exclusive virtual interactive session with Dr. Aswath Damodaran, Professor of Finance at NYU Stern School of Business, on the philosophy and craft of valuation in corporate finance. The topic for the interactive session was "How will Valuation change in the 21st Century?".
Prof. Aswath Damodaran is a legend in the field of corporate finance and valuation and has been called Wall Street's "Dean of Valuation". He is the Kerschner Family Chair in Finance Education and the author of the most widely used textbooks in B-schools across India.
Professor Damodaran spoke about how valuation is, in essence, a craft, as opposed to an art or a science, and the various biases and misconceptions that arise in the nebulous world of valuation. He also spoke about the influence of disruption on valuation, and how the global industry is gradually recognizing the intricacies of the subject.
Dr. Damodaran talked about how valuation initially wasn't even considered a separate subject, but he started teaching the class on his own, simply responding to student interest. "Everything I know about valuation came from teaching this class," he said, also adding that it was while valuing Amazon that he actually understood the intricacies of the topic. "Valuation is neither an art nor a science. It is a craft." Prof. Damodaran added, talking about how it is in fact a craft that can be honed and worked upon.
The Session saw over 400 participants, including faculty, present students, alumni, and professionals from across the country. Questions came thick and fast on the principles and philosophies of valuation, including the valuation of objects with no cash flow, the emerging trends post-Covid, and valuing specific companies. Prof. Damodaran ensured he answered each question with proper depth and detailed reasoning, ensuring that the session was a value-add for all those present.
XLRI-Xavier School of Management, Jamshedpur is a premier, private management institute in India founded in 1949 by Fr Quinn Enright, S.J. in the 'steel city' of Jamshedpur (www.xlri.ac.in). Over the last seven decades, the institute has grown into a top-ranking business management school of international repute with a wide portfolio of management programs and research publications. Its alumni are spread around the globe and have demonstrated responsible business leadership in their organizations. XLRI continually strives to contribute its mite to the professional growth and management of numerous organizations and institutions across industry sectors. XLRI has been awarded two prestigious International Accreditations, viz. AACSB - The Association to Advance Collegiate Schools of Business and AMBA - Association of MBAs. XLRI has also earned the National Board of Accreditation (NBA) accreditation.