4:30pm – 6pm PT (webinar)
The Price of Risk: Looking Back and Forward!
Risk On, Risk Off …
Professor Aswath Damodaran, NYU professor at the Stern School of Business, author, and frequent commentator on CNBC, is back by popular demand for another presentation to a joint session of the of the Financial Executives International SF Bay Area chapter and the American Society of Appraisers Northern California chapter!
During the September 9 session, Professor Damodaran will serve as our “sensei” on value – and will focus on the impact of risk on company valuations.
Investors are constantly in search of a single metric that will tell them whether the market is under or over valued, and consequently whether they should be buying or selling holdings in that market. With equities, one of the metrics that has long been in use is the Price-to-Earnings (“PE”) ratio. The PE ratio, though, has been signaling that stocks have been over valued for most of the last decade – a ten-year period when stocks delivered blockbuster returns (even despite the COVID-19 pandemic). The failures of the metric have been variously attributed to low interest rates, the lack of linkage of profitability (or unprofitability) to company valuations (in particular in the technology sector), and, according to the Professor, by some to “animal spirits.”
During his presentation, Professor Damodaran will discuss an alternative metric that he believes provides not only a comprehensive measure of pricing, but also operates as a barometer of ups and downs in the market. This metric, the equity risk premium, is utilized extensively in the valuation/appraisal world and the Professor will provide his insights on its use as an indicator of risk and its impact on value.
In addition to discussing the Price of Risk, Professor Damodaran will also cover the power of story as a driver of corporate value – and the importance of narrative to understanding different valuations. He will cover a detailed case study on value drivers for a company which went public in August 2021.
Registration link for webinar
1.8 CPE credits
6:15pm – 7pm PT (virtual meeting)
Networking/Social Event
Following “The Price of Risk: Looking Forward!” presentation by Professor Aswath Damodaran, we will host a virtual networking and social session starting at 6:15pm PT. Grab your favorite cocktail or beverage and join us!
Similar to our in-person events, we will go around the "virtual" room for brief introductions. We will then use Zoom’s breakout rooms to facilitate small group discussions (3 to 4 people).
Registration link for networking event