Valuation: Measuring and Managing the Value of Companies, 5th Edition

by McKinsey & Company Inc.; Tim Koller; Marc Goedhart; David Wessels

• ISBN13: 9780470889930
• ISBN10: 0470889934
• Format: eBook
• Copyright: 2010-07-01
• Publisher: Wiley

Summary

The number one guide to corporate valuation is back and better than everThoroughly revised and expanded to reflect business conditions in today's volatile global economy, Valuation, Fifth Edition continues the tradition of its bestselling predecessors by providing up-to-date insights and practical advice on how to create, manage, and measure the value of an organization.Along with all new case studies that illustrate how valuation techniques and principles are applied in real-world situations, this comprehensive guide has been updated to reflect new developments in corporate finance, changes in accounting rules, and an enhanced global perspective. Valuation, Fifth Edition is filled with expert guidance that managers at all levels, investors, and students can use to enhance their understanding of this important discipline. Contains strategies for multi-business valuation and valuation for corporate restructuring, mergers, and acquisitions Addresses how you can interpret the results of a valuation in light of a company's competitive situation Also available: a book plus CD-ROM package (978-0-470-42469-8) as well as a stand-alone CD-ROM (978-0-470-42457-7) containing an interactive valuation DCF modelValuation, Fifth Edition stands alone in this field with its reputation of quality and consistency. If you want to hone your valuation skills today and improve them for years to come, look no further than this book.

Table of Contents

About the Authors

Preface

Acknowledgments

Foundations of Value

WhyValueValue?

Fundamental Principles of Value Creation

The Expectations Treadmill

Return on Invested Capital

Growth

Core Valuation Techniques

Frameworks for Valuation

Reorganizing the Financial Statements

Analyzing Performance and Competitive Position

Forecasting Performance

Estimating Continuing Value

Estimating the Cost of Capital

Moving from Enterprise Value to Value per Share

Calculating and Interpreting Results

Using Multiples to Triangulate Results

Intrinsic Value and the Stock Market

Market Value Tracks Return on Invested Capital and Growth

Markets Value Substance, Not Form

Emotions and Mispricing in the Market

Investors and Managers in Efficient Markets

Managing for Value

Corporate Portfolio Strategy

Performance Management

Mergers and Acquisitions

Creating Value through Divestitures

Capital Structure

Investor Communications

Advanced Valuation Issues

Taxes

Nonoperating Expenses, One-Time Charges, Reserves, and Provisions

Leases, Pensions, and Other Obligations

Capitalized Expenses

Inflation

Foreign Currency

Case Study: Heineken

Special Situations

Valuing Flexibility

Valuation in Emerging Markets

Valuing High-Growth Companies

Valuing Cyclical Companies

Valuing Banks

Economic Profit and the Key Value Driver Formula

Discounted Economic Profit Equals Discounted Free Cash Flow

Derivation of Free Cash Flow,Weighted Average Cost of Capital, and Adjusted Present Value

Levering and Unlevering the Cost of Equity

Leverage and the Price-to-Earnings Multiple

Index

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