Aswath Damodaran: If You Are A Value Investor, Old Tech Is Where You Might Want To Go

Aswath Damodaran, Finance professor at NYU Stern School and author of "The Little Book Of Valuation" was on CNBC Thursday whether tech companies are overvalued. Damodaran also opined on Mark Cuban's recent comments that we are in a tech bubble. "I don't like to call this a ‘tech bubble' because tech now is so diverse and so larger part of the economy that we have to start being a little more discriminating," Damodaran said. "In fact, a couple of weeks ago, I looked at the sector, there are about 2,500 companies and broke them down by age and about 40 percent plus of these companies are more than 25 years old." "So, I actually broke these companies down to – old tech, middle aged tech, young tech and baby tech. And I think the old tech companies actually look like some of the better bargains in the market. If you are a value investor, old tech is where you might want to go." Disagree With Cuban He continued, "Cuban's point is about the baby tech companies, which are actually the private companies and I'll be quite honest I don't share his, I think they are overpriced, but if private investors want to go play the pricing game, I think they deserve to play the game and lose it if they need to." But I think that's a nature of a baby companies everywhere, it's not just tech. Any type of young company, if we get caught up in the pricing game, it's all about mood and momentum and that's all that's driving the pricing of these companies right now," Damodaran concluded.