Valuation : measuring and managing the value of companies, University Edition/6th ed

Series Title Page Copyright About the Authors Preface Why This Book Structure of the Book Valuation Spreadsheet Acknowledgments Part One: Foundations of Value 1: Why Value Value? What Does It Mean to Create Shareholder Value? Can Stakeholder Interests Be Reconciled? Shareholder Capitalism Cannot Solve All Social Issues Consequences of Forgetting Value-Creation Principles Short-Termism Runs Deep This Book Review Questions Notes 2: Fundamental Principles of Value Creation The Relationship of Growth, ROIC, and Cash Flow Balancing ROIC and Growth to Create Value. Real-World ExamplesManagerial Implications Economic Profit Combines ROIC and Size The Math of Value Creation Summary Review Questions Notes 3: Conservation of Value and the Role of Risk Conservation of Value Risk and Value Creation Summary Review Questions Notes 4: The Alchemy of Stock Market Performance Why Shareholder Expectations Become a Treadmill Real-World Effects of the Expectations Treadmill Decomposing TRS Understanding Expectations Managerial Implications Review Questions Notes 5: The Stock Market Is Smarter Than You Think Markets and Fundamentals: A Model. Markets and Fundamentals: The EvidenceWhat about Earnings? Earnings Management Diversification and the Conglomerate Discount Size and Value Market Mechanics Don't Matter Value Creation Is More Important than Value Distribution Summary Review Questions Notes 6: Return on Invested Capital What Drives ROIC? Competitive Advantage Sustainability of Return on Invested Capital An Empirical Analysis of Returns on Invested Capital Summary Review Questions Notes 7: Growth Drivers of Revenue Growth Growth and Value Creation Why Sustaining Growth Is Hard. Empirical Analysis of Corporate GrowthSummary Review Questions Notes Part Two: Core Valuation Techniques 8: Frameworks for Valuation Enterprise Discounted Cash Flow Model Economic-Profit-Based Valuation Models Adjusted Present Value Model Capital Cash Flow Model Cash-Flow-to-Equity Valuation Model Other Approaches to Discounted Cash Flow Alternatives to Discounted Cash Flow Summary Review Questions Notes 9: Reorganizing the Financial Statements Reorganizing the Accounting Statements: Key Concepts Reorganizing the Accounting Statements: In Practice Advanced Issues. Review QuestionsNotes 10: Analyzing Performance Analyzing Returns on Invested Capital Analyzing Revenue Growth Credit Health and Capital Structure General Considerations Review Questions Notes 11: Forecasting Performance Determine the Forecast's Length and Detail Components of a Good Model Mechanics of Forecasting Additional Issues Review Questions Notes 12: Estimating Continuing Value Recommended Formula for DCF Valuation Continuing Value Using Economic Profit Subtleties of Continuing Value Common Pitfalls Evaluating Other Approaches to Continuing Value.

M c KINSEY'S TRUSTED GUIDE TO TEACHING CORPORATE VALUATION, NOW IN ITS 25 TH YEAR

Valuation, University Edition, Sixth Edition, is filled with the expert guidance from M c Kinsey & Company that students and professors have come to rely on. New to the fully revised and updated Sixth Edition:

• New case studies that clearly illustrate how vital valuation techniques and principles are applied in real-world situations
• Expanded content on advanced valuation techniques
• New content on the strategic advantages of value-based management that reflect the economic events of the past decade

For twenty-five years Valuation has remained true to its core principles and offers a step-by-step approach to valuation, including:

• Analyzing historical performance
• Forecasting performance
• Estimating the cost of capital with practical tips
• Interpreting the results of a valuation in light of a company's competitive situation
• Linking a company's valuation multiples to the core drivers of its performance

The University Edition contains End-of-Chapter Review Questions, helping students master key concepts from each chapter.

Wiley also offers an Online Instructor's Manual with a full suite of learning resources for professors and students.

www.wileyvaluation.com

McKINSEY'S TRUSTED GUIDE TO TEACHING CORPORATE VALUATION, NOW IN ITS 25TH YEAR Valuation, University Edition, Sixth Edition, is filled with the expert guidance from McKinsey & Company that students and professors have come to rely on. New to the fully revised and updated Sixth Edition: New case studies that clearly illustrate how vital valuation techniques and principles are applied in real-world situations Expanded content on advanced valuation techniques New content on the strategic advantages of value-based management that reflect the economic events of the past decade For twenty-five years Valuation has remained true to its core principles and offers a step-by-step approach to valuation, including: Analyzing historical performance Forecasting performance Estimating the cost of capital with practical tips Interpreting the results of a valuation in light of a company's competitive situation Linking a company's valuation multiples to the core drivers of its performance The University Edition contains End-of-Chapter Review Questions, helping students master key concepts from each chapter. Wiley also offers an Online Instructor's Manual with a full suite of learning resources for professors and students. www.wileyvaluation.com This book contains a solid framework for valuation: analyzing historical performance, including reorganizing a company's financial statements to reflect economic rather than accounting performance; forecasting performance, with emphasis on not just the mechanics of forecasting but also how to think about a company's future economics; estimating the cost of capital with practical tips that aren't found in textbooks; interpreting the results of a valuation in light of a company's competitive situation; and linking a company's valuation multiples to the core drivers of its performance. Valuati