Valuation: Measuring and Managing the Value of Companies, 4th Edition

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

• ISBN13: 9780471702184
• ISBN10: 0471702188
• Edition: 4th
• Format: Hardcover
• Copyright: 2005-06-01
• Publisher: Wiley

Summary

Hailed by financial professionals worldwide as the single best guide of its kind, Valuation, Fourth Edition with CD-ROM combines is thoroughly revised and expanded to reflect business conditions in today's volatile global economy. Valuation provides up-to-date insights and practical advice on how to create, manage, and measure an organization's value. 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 the events of the Internet bubble and its effect on stock markets, new developments in academic finance, changes in accounting rules (both U. S. and IFRS), and an enhanced global perspective. This package contains a solid framework that managers at all levels, investors, and students have come to trust.

Author Biography

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 eighty offices in more than forty 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. Tim has served clients in North America and Europe on corporate strategy and issues concerning capital markets, M&A transactions, and value-based management. He leads the firm's research activities in valuation and capital markets issues. He received his MBA from the University of Chicago.

Marc Goedhart is an associate principal in McKinsey's Amsterdam office. Marc has served clients across Europe on portfolio restructuring, issues concerning capital markets, and M&A transactions. He received a PhD in finance from Erasmus University Rotterdam.

David Wessels is an adjunct Professor of Finance and director of executive education at the Wharton School of the University of Pennsylvania. Named by BusinessWeek as one of America's top business school instructors, he teaches corporate valuation at the MBA and Executive MBA levels. David received his PhD from the University of California at Los Angeles.

Table of Contents

PART ONE: FOUNDATIONS OF VALUE.

1. Why Maximize Value?

2. The Value Manager.

3. Fundamental Principles of Value Creation.

4. Do Fundamentals -- or Emotions -- Drive the Stock Market.

PART TWO: CORE VALUATION TECHNIQUES.

5. Frameworks for Valuation.

6. Thinking about ROIC and Growth.

7. Analyzing Historical Performance.

8. Forecasting Performance.

9. Estimating Continuing Value

10. Estimating the Cost of Capital

11. Calculating and Interpreting Results

12. Using Multiples for Valuation

PART THREE: MAKING VALUE HAPPEN.

13. Corporate Performance Measurement.

14. Growth.

15. Value Creation through Mergers and Acquisitions.

16. Value Creation through Divestitures.

17. Capital Structure.

18. Investor Communications.

PART FOUR: ADVANCED VALUATION ISSUES.

19. Valuing Multibusiness Companies.

20. Valuing Cyclical Companies.

21. Cross-Border Valuation.

22. Valuation in Emerging Markets.

23. Valuing High-Growth Companies.

24. Dealing with Uncertainty and Flexibility.

25. Valuing Financial Institutions.

Appendices.