Why DCF Sucks for Digital Valuation (Tech Strategy – Podcast 101)

Discounted cash flow (DCF) is a common method for valuing businesses. However, DCF is a poor method for valuing digital businesses. This is because digital businesses are characterized by rapid growth, unpredictable cash flows, and network effects. As a result, the assumptions underlying DCF are not met, and the resulting valuations are often inaccurate.

How Hillhouse Capital Invests In and Digitizes Chinese Companies (Tech Strategy – Podcast 100)

Hillhouse Capital is a leading private equity firm that invests in China. The firm has a successful track record of investing in and digitizing Chinese companies. Hillhouse’s approach is based on three key principles: identifying strong management teams, investing in digital transformation, and building moats.

More Lessons in Digital Operating Basics from Ram Charan. Part 2 of 2 on “Rethinking Competitive Advantage”. (Tech Strategy – Podcast 99)

In the digital age, sustainable competitive advantage comes from scale and growth at small incremental cost, targeting a real or imagined 10x or 100x market space, continuous personalization and customer-facing innovation, a digital core for operations, ecosystem and connectedness, people, culture and work design, and money-making at scale.

Lessons in Digital Operating Basics from Ram Charan. Part 1 of 2 on “Rethinking Competitive Advantage”. (Tech Strategy – Podcast 98)

In the digital age, sustainable competitive advantage comes from scale and growth at small incremental cost, personalization, a digital core for operations, ecosystem and connectedness, people, culture and work design, and operational cash flow.