Valuation is not just about numbers, but about understanding the biases, uncertainties, and complexities that can impact the valuation. It is important to recognize and address these factors in order to make more accurate valuations. The three big problems in valuation are bias, uncertainty, and complexity. Bias can lead to distorted valuations, uncertainty makes it challenging to estimate future cash flows, and complexity can hinder the simplicity that should be at the core of valuation.
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