Corporate Finance – Aswath Damodaran (unfinished)

This course can be found in full on YouTube. It consists of 36 videos, each around 20 minutes in length. The notes herein are a summarised version of Damodaran’s course, for my personal reference.


We can view a company from the perspective of an accounting balance sheet (backwards looking), or a financial balance sheet.

Corporate finance is about maximising the value of a firm. There are three broad decisions any company (regardless of size, sector, location) has to make:

In practice, because the “value of a firm” is unobservable, stock price is used as a proxy. However, using stock price maximisation as the sole objective of corporate finance requires a number of assumptions:

Hurdle rates

This section is essentially about estimating the cost of capital. Please see the notes on Valuation for this.

Measuring investment returns


This section is a condensed version of Damodaran’s Valuation Course. See my notes on this.