Narrative and numbers

In this book, Aswath Damodaran argues that the power of storytelling is crucial in driving corporate value, complementing numerical data.

He outlines a five-step process for valuation: developing a narrative, testing its plausibility, converting the narrative into value drivers, connecting these drivers to a valuation, and maintaining an open feedback loop.

The book uses case studies of companies like Uber, Twitter, Facebook, Apple, and Vale to demonstrate how narratives influence financial models and projections.