I don’t always agree with Dr. Damodaran, but the video can help any analyst writing a research report. You have to link your story to numbers. He mentions that he prefers to teach history majors how to value than teach engineers how to be creative/tell a story with their numbers.
The mistake Prof. Damodaran made on Vale was not normalizing the biggest cyclical boom in iron ore prices in the past five hundred years.
But csinvesting.org readers know their history when technological change or a catalyst for regulatory change Airline_deregulation upends an incumbent, then the plunging price becomes a value trap versus an opportunity. Reflexively reaching for this 8% yield by not turn out well.
Of course, the future is uncertain, but after a five year bull run, failure to advance after last quarter’s earnings beat and pricing pressure from UBER, then TAXI’s high valued medallions may become less so. The government is placing an artificial restriction to keep supply low while boosting prices that hurt consumers’ choices and pocketbook. I wonder how this fight will turn-out? I will be watching this unfold.