Domodaran spent 97% of his analytical time on cash flow estimation for Twitter and only 3% on the discount rate, using an 11% rate (95th percentile of U.S. companies) without detailed analysis because he believes the biggest risks to valuation accuracy come from growth and margin assumptions, not the discount rate
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Aswath DomodaranEvidence Quote
“The Twitter valuation, 97% of the time that I spent was on the cash flow, and towards the end, said, I need a discount rate... This is really the small stuff. My bigger assumption is what my revenues will be, what my margins will be.”
Created: 8/11/2026, 1:45:13 AM
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