Faculty News

Prof. Aswath Damodaran discusses Twitter's value

Excerpt from BBC -- "There are two ways to think about valuation. One is to think about what you're buying, which is a set of cash flows with a lot of risk and growth associated with them, and try to value it, which is the way people have always valued businesses. The other is to price it, which is to look at what other people are paying for something a little bit like what you're buying. Think of buying a house...the realtor tells you it's worth $1 million or $2 million. The way he or she is coming up with that number is by looking at other houses in the neighborhood and what they sold for. So the first thing you have to think about when you think about valuing something like this: are you going to price it or are you going to value it?"

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Additional coverage appeared on The Economist, International Business Times, Voice of America and The Washington Post.