Valuation: Measuring and Managing the Value of Companies, University Edition

✍ Scribed by McKinsey;Company Inc.;Marc Goedhart;David Wessels

• Publisher: Wiley
• Year: 2015
• Tongue: English
• Edition: 6th Edition
• Category: Library

✦ Synopsis

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.

✦ Table of Contents

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.

✦ Subjects

Corporations--Valuation;Electronic books;Corporations -- Valuation