Aswath Damodaran

Damodaran published an essay titled The AI Trade Deconstructed, arguing that the market is no longer treating artificial intelligence stocks as a single basket. He suggested that exposure to capital-spending suppliers differs from exposure to end demand, so these groups are likely to be repriced separately.

Damodaran valued the equity of Anthropic at about $1.475 trillion after its IPO filing on 26/10/2026. He said this valuation would inform his own decision on whether to buy or sell its shares, and he published a step-by-step walkthrough of the prospectus for investors who want to value it themselves.

Damodaran wrote that a jump in US Treasury rates in September 2026 had pushed the equity risk premium below 4% for the first time that year. He linked this to the continued effect of AI-driven earnings on stock prices.

Damodaran released an unscheduled country risk premium update dated 01/04/2026, breaking from his usual twice-yearly schedule. He reported that the equity risk premium rose from 4.37% in March 2026 to 4.77% by April 1, reflecting higher risk amid the war-related market turmoil.

Damodaran published his mid-year 2025 update on implied equity risk premiums and said the Moody's downgrade of U.S. Treasury debt had complicated the process of estimating the S&P 500's premium. He noted that he continues to update these figures regularly for investors and practitioners using his public valuation resources.

Damodaran discussed market turmoil in 2025 by comparing it with the crashes of 2008 and 2020 and explained how he was using daily implied equity risk premium calculations to track conditions during the period of tariff-driven stress. The commentary focused on his framework for assessing risk and on the ongoing public availability of his updated data.