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The way cash flow volatility affects the value of companies is of considerable interest to researchers. However, empirical studies present contrasting results. Using a sample of SBF250 non-financial companies, we first examine the overall net effect of cash flow volatility on the company’s Tobin’s Q. We then refine this initial result by distinguishing companies that use hedging instruments to reduce cash flow volatility from other companies. Finally, an approach based on real options allows us to distinguish between companies according to the degree of irreversibility of their investments.