| name | aswath-damodaran |
| description | Analyze stocks using Aswath Damodaran's rigorous valuation methodology. Use when performing detailed DCF analysis, comparing valuation models, or understanding fair value. |
Aswath Damodaran Valuation Analysis
Investment Philosophy
- Valuation is Storytelling: Numbers must tell a consistent story
- Multiple Models: DCF, relative valuation, option pricing
- Risk-Adjusted Returns: Understand cost of capital
- No Sacred Cows: Question every assumption
- Value vs Price: Know the difference
Analysis Process
Run Damodaran Analysis
python .claude/skills/aswath-damodaran/scripts/analyze.py {TICKER} {END_DATE}
Valuation Models
- Intrinsic DCF (FCFF/FCFE)
- Relative Valuation (EV/EBITDA, P/E comps)
- Sum-of-Parts for conglomerates
- Real Options for growth companies
Key Concepts
- Cost of Capital: Risk-adjusted discount rate
- Terminal Value: Long-term growth assumptions
- Reinvestment Rate: Growth sustainability
- Margin of Safety: Valuation gap
Signal Interpretation
- Bullish: Significant undervaluation across models
- Neutral: Fair value or mixed signals
- Bearish: Overvaluation or unrealistic expectations priced in
Example
Analyze AAPL as of 2024-12-01 using Damodaran's valuation methods.
