Data Update 6 for 2023: The Upside and Downside of Debt

Podcast: Aswath Damodaran · Aswath Damodaran

Opublikowano: 2026-10-19

When funding a business, you can use either borrowed money (debt) or your own money (equity). In this session, I by starting by looking at the trade offs, both real and illusory, that determine the right mix of debt and equity for a business, and use the cost of capital as an optimizing tool to determine the right mix of debt and equity. (I use it to go back and look at whether Adani Group is over levered.). I then turn to the corporate use of debt in 2022, examining the distribution of debt to capital (gross & net, book and...