AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
2min snip
TIP577: Valuation Masterclass w/ Aswath Damodaran
We Study Billionaires - The Investor’s Podcast Network
Assessing the Value of Companies Reinvesting Cash Flows
Valuing a company that reinvests most of its cash flows requires a thoughtful approach. Growth by itself is not good or bad, it should create value by earning more than it costs to raise money. It's essential to evaluate not only the growth rate but also what the company is reinvesting to achieve that growth. Assessing the efficiency of investments made for growth is crucial in making prudent investment decisions. Companies making good investments will yield positive results, while those making poor investments will yield negative results. It is important not to focus solely on growth but to also consider how efficiently companies are delivering growth.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode