Narrative and Numbers: The Value of Stories in Business
Review Narrative and Numbers: The Value of Stories in Business
by ASWATH DAMODARAN
Description
Out of all the complexities that inhibit the financial industry, one interesting question that’s generally asked is how a single firm, without previous profit or history of earnings, can have a multibillion-dollar valuation. Similarly, it entails the question as to how small start-ups gain tight market traction while others fail to do so. In this groundbreaking book titled Narrative and Numbers, the author highlights the importance of story and its power directed at numbers, its implication to corporate value, and the persuasion it holds to investors to take risks.
The world of finance is flocked by convincing storytellers, all of whom are equipped with great narrative and supreme knowledge in numbers to develop and propose optimum models and frameworks fully. This carries out an ideology that figures aren’t the only key to success. Narrative and numbers are continua that the existence of one is imperative for another one to function. Each has an impact on business. However, combining these two would lead to greater value and consistent returns.
Utilizing research-based findings and case studies, this book provides discussions on how to present numbers in a compelling manner substantially. More so, it enables one to utilize unique methodologies that provide little to no margin of criticism as all are based in time-tested and enduring researches. Included inside are studies of the company that brought Uber, Twitter, and Facebook and how these companies managed to gain tight adhesion in the field. More importantly, this book exposes the advantages, hardships, and common pitfalls of creating a narrative using numbers and how to assess the effectiveness of the crafted story.
About the Author
ASWATH DAMODARAN serves as the chairman in Finance Education. Currently, he teaches finance and other related studies at New York University’s Stern School of Business. He is also an author to which he published a series of best-selling books, including Narrative and Numbers, The Little Book of Valuation, and Investment Valuation.
Table of Contents
Preface
- A Tale of Two Tribes
- Tell Me a Story
- The Elements of Storytelling
- The Power of Numbers
- Number-Crunching Tools
- Building a Narrative
- Test-Driving a Narrative
- From Narratives to Numbers
- Numbers to Value
- Improving and Modifying Your Narrative- The Feedback Loop
- Narrative Alterations-The Real World Intrudes
- News and Narratives
- Go Big- The Macro Story
- The Corporate Life Cycle
- The Managerial Challenge
- The Endgame
Notes
Index
