Interview with Professor Aswath Damodaran, Stern School of Business at New York University

Abstract

This interview launches a new series in The Journal of Private Markets Investing called “Damodaran on Private Asset Valuation.” Over the next several issues, we will publish articles by world-renowned valuation expert Professor Aswath Damodaran that revisit some of the most persistent challenges in valuing private assets, including the valuation of young and start-up companies, the measurement of illiquidity, and the assumptions that distinguish private-asset valuation from public-market valuation. 

In this brief interview, I discuss with Professor Damodaran the current state of private markets, what misconceptions people have (including professional investors) when it comes to valuing private assets, and the role of emerging technologies in valuation.  Professor Damodaran’s answers challenge several widely held assumptions about private markets and provide a provocative starting point for the series that follows.