aswath-damodaran

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

1. Valuation is Storytelling: Numbers must tell a consistent story
2. Multiple Models: DCF, relative valuation, option pricing
3. Risk-Adjusted Returns: Understand cost of capital
4. No Sacred Cows: Question every assumption
5. 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.