The entry price is only the beginning

Investors can spend so much effort debating the entry multiple that they neglect the duration of the business.

A company able to reinvest at attractive rates for a long time can make an apparently demanding price look modest. A cheap business with deteriorating economics can remain cheap while destroying value.

Price matters. So does what the asset is capable of doing after we buy it.

The difficult work is understanding the length and strength of the compounding runway. That requires more than a spreadsheet. It requires a view of the business, its advantage, and how the surrounding system may change.