A Summary of the Main Idea of
Narrative and Numbers
The Value of Stories in Business
One school of thought (left brain) suggests value is driven solely by the numbers and therefore number crunchers can calculate market value with formulas and a spreadsheet. An alternate approach (right brain) is to look at the underlying story or narrative behind the asset and use storytelling to come up with a valuation.A much better approach to valuation is to blend together both the numbers and the underlying narrative. To come up with a good valuation, you have to be able to talk both languages. You have to take the numbers and then give them context on the basis of the background narrative.
Stories without numbers are little more than fairy tails. Numbers without stories are exercises in financial modelling. A good valuation is a bridge which will draw on both the numbers and the stories to come up with a figure that makes sense.