IEM students engaged in scientific debate with professor of New York University and he has incorporated their recommendations

During the conference “Trade Education and Appraiser’s Qualification: Modern Standards and Requirements” at IEM a group of bachelor students told how they had analyzed the calculations of famous finance and appraisal expert’s Aswat Damodaran calculations and subsequently engaged him in the scientific debate.

The students analyzed the stock data for creation of the portfolio for the academic subject “Portfolio investments” (by IEM Professor Olga Belomytseva). During that period the German shoe-making company Birkenstock was making the initial public offering with preliminary valuation of the stock by Aswat Damodaran.

Aswat Damodaran is a finance professor at the Stern School of Business at New York University where he teaches corporate finance and valuation. He is the author of several books about valuation, corporate finances and investments. His articles have been published by leading finance magazines. He is also known as the valuation and analysis expert for investments banks on Wall Street.

The students studied the financial model put out by Mr. Damodaran in the open in English.

The students took on a pretty big task, Olga Belomytseva says. First of all, they sorted out the tabular data given in English and that’s not easy. Secondly, they figured out the financial model, examined all the factors considered by the famous appraiser, found a minor error and due to their own initiative communicated it to Mr. Damodaran and got positive feedback from him. As a result, we have a perfect multifactorial practical case: how to evaluate an actual stock using particular data; how to establish communication with an internationally recognized financial expert; how to articulate and maintain a position.

According to Olga Belomytseva, in solving of this case there is a combination of several factors necessary for the students: an universally recognized office of issue, famous appraiser, availability of information in English. And we should not forget about another very important factor – professional approach by the students to the project.