Myth 2: A good valuation provides a precise estimate of value Dr. Damodaran believes there are no

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Myth 2: A good valuation provides a precise estimate of value

Dr. Damodaran believes there are no precise valuations, and that the "payoff to valuation is greatest when valuation is least precise."

-Please explain why The payoff to valuation is greatest when valuation is least precise.

-Please cite at least 1 example of a scenario that proves how payoff to valuation is greatest when valuation is least precise

Reference:

Business Valuation Methods: 3 Myths, 3 Approaches from Aswath Damodaran - Rock LaManna

Related Book For answer-question

Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

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Posted Date: Feb 09, 2024 08:39 AM

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Myth 2: A good valuation provides a precise estimate of value Dr. Damodaran believes there are no

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The idea that the payoff to valuation is greatest when valuation is least precise stems from the rec... View the full answer

Intermediate Microeconomics

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