The objective of this blog is to share knowledge and ideas regarding: Valuation and Strategy.
Why is valuation so interesting?
- Price and value often differ
- You can’t see value, but you can try to approximate it
- To understand the value is to understand strategic positioning, the downside risks and the upside potential of a business
- The spread between valuation and pricing is always a topic of debate due to information assymetry, behavioral biases
- Inputs in standard valuation models are based on the efficient market hypothesis. This hypothesis has been proven not applicable in many cases.
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