Narrative and Numbers: The Value of Stories in Business (Columbia Business School Publishing)

by Aswath Damodaran

Building on the dimensions of growth, profitability, investment, and risk

The overpricing will be much greater in markets in which there are global networking benefits (i.e., growth feeds on itself) and winners can walk away with dominant market shares. Since the payoff to success is greater in these markets, misestimating the probability of success will have a much bigger effect on value.