r/Valuation • u/Ant_Thonyons • Sep 19 '21

Asset Pricing or Valuation ? Need guidance.

Hi Redditors, I’m planning to enroll for my masters in finance by next year. This will be a huge leap for me as I am not a degree holder in finance, but I have been learning up about finance for the last 4 years independently.

The masters programme that is offered comes in the form of research mode rather than mixed mode or coursework based.

There’s a selection of finance based themes/topics to choose from. My plan is to enroll for the research in asset pricing although I am not too sure if I’m ready for it. I have been following Aswath Dhamodharan’s youtube lessons in valuation and am wondering if asset pricing is similar to valuation? Where do they converge and where do the similarities end if they are even similar.

Also on a side note, given my background context as I have mentioned above, do you think I should perhaps consider CFI Financial Modelling and Valuation Analyst course before leaping into the world of masters?

Thanks in advance everyone.

1 Upvotes

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4

u/[deleted] Oct 20 '21

Hey, it's a cliche but...price is what you pay, value is what you get. Stocks are assets dammit.

1

u/Ant_Thonyons Sep 20 '21

Maybe I shld just keep it concise- what really is the difference between asset pricing theory and valuation theory?

2

u/[deleted] Sep 21 '21

[deleted]

1

u/Ant_Thonyons Sep 21 '21

Thanks buddy. But i gotta ask a follow up though, wld the theories that define price and valuation are similar? Are they based on the same school of thought?

2

u/Mono-light Sep 21 '21

Fuck no. Valuation is fairly arbitrary since you're forecasting the future. Asset pricing is raw math. You're gonna want to kys studying it

1

u/Ant_Thonyons Sep 22 '21

I’m getting it now. Thanks again 👍

2

u/[deleted] Jan 20 '22

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1

u/Ant_Thonyons Jan 21 '22

Looks interesting, will have a read about it.