HFA Icon

Aswath Damodaran: Valuing A Commodity Business

HFA Padded
Rupert Hargreaves
Published on
Sign up for our E-mail List and Get FREE Access to Exclusive Investment E-books and More!

Placing a value on the equity of cyclical and commodity companies is a challenging process not least because growth often comes from movements in the economic cycle.

The primary risk for cyclical firms is the health of the economy, and for commodity companies, the primary risk is commodity price movements. Unfortunately, these risks can stay dormant for long periods of apparent prosperity.

If you’re looking for value stocks, and exclusive access to value-focused hedge fund managers, check out ValueWalk’s exclusive value newsletter, Hidden Value Stocks.

Login required to continue reading.

Setup a free account to get access to this article (no credit card required).

View Full Article
Already a member? Log in here
HFA Padded

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha