Reddit reviews Narrative and Numbers: The Value of Stories in Business (Columbia Business School Publishing)
We found 1 Reddit comments about Narrative and Numbers: The Value of Stories in Business (Columbia Business School Publishing). Here are the top ones, ranked by their Reddit score.
Qualitative factors are always the most important part of valuing a company as its that understanding that should drive the numbers.
Aswath Damodaran did a great talk at Google a few years back that I think you'd enjoy -- https://www.youtube.com/watch?v=Z5chrxMuBoo -- and he also wrote a book called Narrative and Numbers: The Value of Stories in Business which is worth a read.
Models are just a way to express your thoughts. My best models have been around 5 lines long outlining how the key drivers translated into future earnings. My worst models have been many many pages.
As for valuations and how stocks trade, yes they're different things. A valuation should reflect what you think a company is worth, and if you buy it at that price you should get your discount rate as a return over the long-term provided all your assumptions prove to be correct.
How a stock acts is completely different. Any investor or trader should have a clear idea about whether their strategy is to predict the long-term value of a company and buy based on that, or whether it's to predict what other market participants will do which will drive prices in the short-term. Often in practice it's a combination of both even if people don't explicitly say that.