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257. The new and timeless truths of valuation

Inside the Strategy Room

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Valuation Evolution and Long-Term Strategies

This chapter explores the evolution of valuation concepts, emphasizing the significance of long-term value creation and sustainable practices over short-term gains. It discusses the challenges companies face in resource reallocation and the need for a fact-based decision-making approach, especially amid market uncertainties. Additionally, it contrasts the effectiveness of scenario planning with simulations in estimating future cash flows, advocating for a clear and flexible investment strategy.

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