Inside the Strategy Room 257. The new and timeless truths of valuation
67 snips
Jun 25, 2025 
Tim Koller, a partner at McKinsey with over 40 years of experience in corporate finance, and Marc Goedhart, a professor of corporate valuation at Erasmus University, share their insights on the latest edition of their valuation book. They discuss the evolution of valuation concepts amid market uncertainties, emphasizing long-term value creation over short-term gains. The duo explores the differences between private and public company valuations, the impact of market bubbles, and the importance of data-driven decision-making for sustainable growth.
AI Snips
Chapters
Books
Transcript
Episode notes
Use Approximate Data for Insights
- Build and use a fact base with approximate data for quicker, effective decision making.
- Precision down to decimals is less important than gaining actionable insights.
Value Startups on Future Potential
- For startups, focus valuation on future potential market size, market share, and returns.
- Adapt methods realistically and assess if the business is positioned to win in new markets.
Manage Uncertainty with Scenarios
- Avoid freezing in uncertainty; analyze specific impacts on your industry over time.
- Use scenarios rather than complex simulations to clarify assumptions and actions.
