Valuation + DCF Model Download

Valuation + DCF Model Download : Measuring and Managing the Value of Companies

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McKinsey & Company's #1 best-selling guide to corporate valuation, now in its sixth edition Valuation is the single best guide of its kind, helping financial professionals worldwide excel at measuring, managing, and maximizing shareholder and company value. This new sixth edition provides insights on the strategic advantages of value-based management, complete detailed instruction, and nuances managers should know about valuation and valuation techniques as applied to different industries, emerging markets, and other special situations. The accompanying DCF model download allows you to complete computations automatically for error-free analysis and valuation of real companies. The model ensures that all important measures, such as return on investment capital and free cash flow are calculated correctly, so you can focus on the company's performance rather than computational errors. Valuation lies at the crossroads of corporate strategy and finance. In today's economy, it has become an essential role and one that requires excellence at all points. This guide shows you everything you need to know, and gives you the understanding you need to be effective.
* Estimate the value of business strategies to drive better decision making * Understand which business units a corporate parent is best positioned to own * Assess major transactions, including acquisitions, divestitures, and restructurings * Design a capital structure that supports strategy and minimizes risk As the valuation function becomes ever more central to long- and short-term strategy, analysts and managers need an authoritative reference to turn to for answers to challenging situations. Valuation stands ahead of the field for its reputation, quality, and prestige, putting the solutions you need right at your fingertips.
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Product details

  • Hardback | 848 pages
  • 179 x 264 x 38mm | 1,558g
  • New York, United States
  • English
  • 6th Edition
  • 1118873688
  • 9781118873687
  • 312,777

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Not all CEOs, business managers, and financial managers possess a deep understanding of value, although it is essential knowledge to creating value for companies and shareholders.

McKinsey's Valuation: Measuring and Managing the Value of Companies, Sixth Edition, with its companion DCF Model Download, provides the knowledge executives need to make value-creating decisions--replacing some of the myths that pervade the corporate world with proven principles of value creation.

Thoroughly revised and expanded to reflect business conditions in today's volatile global economy, Valuation + DCF Model Download, Sixth Edition provides up-to-date insights and practical advice on how to create, manage, and measure the value of an organization.

The Sixth Edition provides: An overview of the two core principles of valuation: the idea that return on invested capital and growth drive cash flow, and a conversation principle that anything that doesn't increase cash flow doesn't create value (unless it reduces risk). Guidance for using discounted cash flow (DCF) to value a company, with an emphasis on how to analyze historical performance, forecast free cash flows, estimate the appropriate opportunity cost of capital, identify sources of value, and interpret results. An explanation of how to analyze and incorporate in your valuation such complex issues as taxes, pensions, reserves, inflation, and foreign currency, complete with a case-study example. A framework for value creation built upon designing a portfolio of businesses, executing strategic M&A decisions and divestitures, and aligning appropriate capital structure and proper communication of business strategy with the financial markets. An exploration of special situations in which valuation is complex, such as the multi-dimensional challenges of valuing higher growth companies, emerging markets, cyclical companies, and banks; or in the use of option-pricing theory and decision trees in valuations.

Acclaimed for 25 years by corporate finance experts as the best guide in its class, Valuation, Sixth Edition explains, step-by-step, how to do valuation well. Business managers will learn how to decide among alternative business strategies by estimating the value of each strategic choice; how to assess major transactions such as acquisitions, divestitures, and restructurings; how to design an effective capital structure to support the corporation's strategy and minimize the risk of financial distress; and how to create value and improve corporate performance.
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Back cover copy

Praise for Previous Editions

The #1 guide to corporate valuation is back . . . and better than ever!

"The best valuation book just got better. This edition's greater emphasis on what drives value and how to measure it will improve the way practitioners conduct financial analysis and, ultimately, make strategic decisions. It is required reading for all executives."
--Professor Benjamin C. Esty, Harvard Business School, author of Modern Project Finance: A Casebook

"The bible in its field. Anyone wanting to understand what drives corporate value should read this latest edition."
--Dr. Raymund Breu, retired Chief Financial Officer, Novartis AG

"A 'how-to' guide for corporate executives who want to get at the unrealized shareholder values trapped in public companies."
--New York Times

"The book's clarity and comprehensive coverage make it one of the best practitioners' guides to valuation."
--Financial Times

Also available from McKinsey's suite of Valuation, Sixth Edition products:

Valuation Workbook, Sixth Edition Part of McKinsey's esteemed Valuation approach, this companion workbook (978-1-118-87387-8) is a must-have guide to reviewing and applying the valuation concepts and techniques discussed in Valuation, Sixth Edition.

Value: The Four Cornerstones of Corporate Finance (978-0-470-42460-5) offers an executive overview of the core concepts of corporate finance and their ties to value. Intended for managers and students, this accessible guide offers a solid foundation to valuation.
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Table of contents

About the Authors ix Preface xi Acknowledgments xv Part One Foundations of Value 1 WhyValueValue? 3 2 Fundamental Principles of Value Creation 17 3 Conservation of Value and the Role of Risk 35 4 The Alchemy of Stock Market Performance 49 5 The Stock Market Is Smarter Than You Think 65 6 Return on Invested Capital 93 7 Growth 115 Part Two Core Valuation Techniques 8 Frameworks for Valuation 135 9 Reorganizing the Financial Statements 165 10 Analyzing Performance 201 11 Forecasting Performance 221 12 Estimating Continuing Value 247 13 Estimating the Cost of Capital 269 14 Moving from Enterprise Value to Value per Share 301 15 Analyzing the Results 321 16 Using Multiples 331 17 Valuation by Parts 353 Part Three Advanced Valuation Techniques 18 Taxes 373 19 Nonoperating Items, Provisions, and Reserves 387 20 Leases and Retirement Obligations 405 21 Alternative Ways to Measure Return on Capital 423 22 Inflation 445 23 Cross-Border Valuation 459 24 Case Study: Heineken 481 Part Four Managing for Value 25 Corporate Portfolio Strategy 525 26 Performance Management 543 27 Mergers and Acquisitions 565 28 Divestitures 593 29 Capital Structure, Dividends, and Share Repurchases 611 30 Investor Communications 643 Part Five Special Situations 31 Emerging Markets 667 32 Valuing High-Growth Companies 691 33 Cyclical Companies 705 34 Banks 713 35 Flexibility 741 Appendix A Discounted Economic Profit Equals Discounted Free Cash Flow 775 Appendix B Derivation of Free Cash Flow, Weighted Average Cost of Capital, and Adjusted Present Value 781 Appendix C Levering and Unlevering the Cost of Equity 787 Appendix D Leverage and the Price-to-Earnings Multiple 795 Appendix E Other Capital Structure Issues 799 Appendix F Technical Issues in Estimating the Market Risk Premium 805 Index 809
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About McKinsey & Company Inc.

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. 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 a senior expert 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.
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