# Professor Aswath Damodaran discusses the high valuation of start-up companies in India

1 Faculty News October 27, 2015 ![The Economic Times logo](/sites/default/files/styles/246w/public/assets/images/con_032922.jpg?itok=VCGfauqd)>

Excerpt from [The Economic Times](http://economictimes.indiatimes.com/news/company/corporate-trends/et-500-why-retail-investors-have-not-been-able-to-partake-in-the-startups-growth-story/articleshow/49515516.cms?prtpage=1) -- "'VCs are pricing these companies at very large numbers. This pricing reflects the expectation that disruption is coming to many Indian businesses, which have historically been poorly run, inefficient and splintered,' said Professor [Aswath Damodaran](http://www.stern.nyu.edu/faculty/bio/aswath-damodaran) of the Stern School of Business at New York University. 'Whether they are being overly optimistic in their assessments, only time will tell for the individual companies,' he added."

[Read more](http://economictimes.indiatimes.com/news/company/corporate-trends/et-500-why-retail-investors-have-not-been-able-to-partake-in-the-startups-growth-story/articleshow/49515516.cms?prtpage=1)