Zomato 2022 Update: Value, Pricing and the Gap

Damodaran updates his valuation of Zomato from ₹40.79 (July 2021) to ₹35.32 (July 2022), reflecting deteriorating unit economics, increased losses despite revenue growth, and higher cost of capital driven by macro headwinds. The article contrasts the stock's momentum-driven pricing (₹169 peak, now ₹41.65) with intrinsic value, arguing that much of the decline stems from inflation and risk capital flight rather than company fundamentals alone. Damodaran emphasizes that investors conflating price recovery with valuation vindication misunderstand both the mechanics of valuation and personal accountability in investment decisions.