Valuation: Measuring and Managing the Value of Companies

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Foundations of Value: Why Maximize Value? - The Value Manager - Fundamental Principles of Value Creation - Do Fundamentals really Drive the Stock Market? - Core Valuation Techniques: Frameworks for Valuation - Thinking about ROIC and Growth - Analyzing Historical Performance - Forecasting Performance - Estimating Continuing Value - Estimating the Cost of Capital - Calculating and Interpreting Results - Using Multiples for Valuation - Making Value Happen : Performance Management - Growth - Value Creation through Mergers and Acquisitions - Value Creation through Divestitures - Capital Structure - Investor Communications - Advanced Valuation Issues: Valuing Multibusiness Companies - Valuing Cyclical Companies - Cross-Border Valuation - Valuation in Emerging Markets - Valuing High-Growth Companies.

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Excellent book!

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This was the first book I used in being introduced to company valuation and breaking down a companies' finacials (10ks, etc). The book was the course text for a finance course in my MBA curriculum from IU-Kelley School of Business. I recommend the book. The materials learned in this book don't replace learning how to build advanced financial & valuation models, but well supplement them and build a solid foundation for intuitively understanding the ideas behind. The book also serves as a good reference.  

About the author (2005)

The authors are all current or former consultants of McKinsey & Company's corporate finance practice. Collectively they have more than 50 years of experience in consulting and financial education.
McKinsey & Company is a management-consulting firm that helps leading corporations and organizations make distinctive, lasting, and substantial improvements in their performance. Over the past seven decades, the firm's primary objective has remained constant: to serve as an organization's most trusted external advisor on critical issues facing senior management. With consultants deployed from over 80 offices in more than 40 countries, McKinsey advises companies on strategic, operational, organizational, financial, and technological issues. The firm has extensive experience in all major industry sectors and primary functional areas, as well as in-depth expertise in high-priority areas for today's business leaders.

Tim Koller is a partner in McKinsey's New York office. He leads the firm's Corporate Performance Center and is a member of the leadership group of the firm's global corporate finance practice. In his 20 years in consulting Tim has served clients in North America and Europe on corporate strategy and capital markets, M&A transactions, and value-based management. He leads the firm's research activities in valuation and capital markets. He was formerly with Stern Stewart & Company, and Mobil Corporation. He received his MBA from the University of Chicago.

Marc Goedhart is an associate principal in McKinsey's Amsterdam office and a member of the leadership group of the firm's corporate finance practice in Europe. Marc has served clients across Europe on portfolio restructuring, capital markets, and M&A transactions. He taught finance as an assistant professor at Erasmus University in Rotterdam, where he also earned a PhD in finance.

David Wessels is an adjunct professor of finance at the Wharton School of the University of Pennsylvania. Named by Business Week as one of America's top business school instructors, he teaches courses on investment banking and corporate valuation at the MBA and Executive MBA levels. David is also a director in Wharton's executive education group, serving on the executive development faculties of several Fortune 500 companies. David, a former consultant with McKinsey, received his PhD from the University of California at Los Angeles.

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