Valuation is a story said with numbers

Incidentally a few days ago I was pointing out that any financial #forecasts have to reflect the business #strategy of the company, its #value proposition, the whole story behind the product.

Damodaran, a great name for corporate finance makes a similar recommendation: #Storytelling is a key tool when valuing the disruptors, he says. So much so that he calls it “the biggest hidden secret in #valuation.”“A good valuation is a bridge between stories and numbers,” he said. “I think the most dangerous thing that has happened to valuation in the last four years is Excel. In most valuation classes and financial modeling classes, you become an Excel ninja. We’ve lost the capacity to tell stories with numbers.”

Read his post here: https://lnkd.in/dhShHBw

The most reliable way to understand the future is to try and understand the present. One has to understand the #vision of the company, the #people behind it and the #customer #behavior. This necessitates financial skills and non-financial skills.

#valueproposition #financialmodeling #corporatefinance