High growth, weak cash flow
A company grows sales at 30%, but receivables grow faster than revenue. The key question is whether growth is real or just credit push.
Examples
Mini cases for classroom discussion.
Low growth, strong margin
A mature company has modest growth but stable margins and strong conversion. The valuation may depend more on durability than headline growth.
Multiple looks cheap
A low EV/EBITDA multiple may reflect customer concentration, poor governance, or falling margins.
DCF looks precise
A DCF can look scientific, but the conclusion is only as strong as the assumptions and sensitivity logic.