Data Update 4 for 2024: Danger plus Opportunity - Risk enters the Equation!

Risk is at the center of finance, both in the context of business decision making and investments. In this session, I start by breaking risk down into buckets and looking at the evolution of measures of risk. I look at differences across companies and regions, using both price-based and intrinsic risk measures. I then look at risk variations across countries and how they play out as different equity risk premiums. In closing, I look at how the inputs in this and the prior to two data updates help in computing the cost of capital, why that cost of capital affect decision making and the distribution of costs of capital, at the start of 2024.
Slides: pages.stern.nyu.edu/~adamodar...
Blog Post: aswathdamodaran.blogspot.com/...
Cost of capital paper: pages.stern.nyu.edu/~adamodar...
Country risk paper: papers.ssrn.com/sol3/papers.c...
Equity Risk Premiums, by country: pages.stern.nyu.edu/~adamodar...

[@gingerbread_GB]

Your Chinese characters and the interpretation are both correct. There are quite a few Chinese adages that couple risk and opportunities together.

[@MrAarunraj]

Thanks once again Prof.
He Made good book about the Risk as Strategic Risk Taking , A framework for risk management by Aswath Damodaran, Wharton school publishing.

[@Flor-ian]

Your risk buckets are a great framework. Thanks as alwaus

[@herokorai8346]

Thank you professor Aswath!

[@Jerandjoe1]

Wow valuable lesson regarding danger and rewards...underneath the belly of the dragon lies gold!

[@siddharthghosh8750]

Prof Damodaran is awesome 😎

[@Mpumzar]

Wow this is so amazing i am a scientist and very keen to learn finance. Your videos are helping a lot.

[@surani1948]

Absolutely awesome. You slice & dice different factors in an amazing manner. Thank you for yet another informative financial breakdown. Am going to review this again & try & digest each factor deeply in order to guide my investing journey. Always look forward to your lectures & postings 🙏🙏🙏

[@Noysend1]

Really enjoyed. Thank you.

[@footbballa1784]

GOAT Professor

[@perumahandicianjur1247]

Mantap lah mang

[@sureshlalwani410]

Thank you Sir

[@SpaceExplorer]

i love data

[@GargPranav]

Pls make a video on pricing platinum and how it can change over time wrt to inflation due to QE and other possible factors

[@Septumsempra8818]

I have done research in both 🇿🇦 and 🇿🇼. The stark contrast in how much price reflects value is sad.

[@bebobop123]

Go bruins!

[@vidhitrana2174]

While We're playing checkers, you're playing moneyball

[@tevsepromwebmaster8541]

Dear Professor, Taken a point the follow, the guys are dessesperated for to realice a breaf case or long case Harvard about bussines ; but relationated intimately with the recently material or knowledges fresh that use in these sessions with intention of to aplicate in a one valuetion of company.
The guys are crazy for finance.
My strong point ain't the english idiome, neither don't liked, calm down.