Part 2/6:
Damodaran has observed that as data and tools for valuation have become more powerful, the quality of valuations has actually declined. He believes this is because we have forgotten the art of storytelling in valuation.
Every valuation is a story about the company, and it's the analyst's job to make that story explicit. Without a clear narrative, valuations become just numbers in a spreadsheet.
Damodaran's previous book, "Narrative and Numbers," addressed this issue, emphasizing the importance of bounded storytelling that reflects the company's current stage in the life cycle.