Valuation : Measuring and Managing the Value of Companies
* 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.
- Hardback | 848 pages
- 180 x 260 x 34mm | 1,342g
- 04 Sep 2015
- John Wiley & Sons Inc
- New York, United States
- 6th Edition
Other books in this series
20 Apr 1993
08 Jul 2011
10 Sep 2014
13 Aug 2013
McKinsey's Valuation: Measuring and Managing the Value of Companies, Sixth Edition 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, 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.
Back cover copy
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."
Also available from McKinsey's suite of Valuation, Sixth Edition products:
Valuation DCF Model Download is available as a download (978-1-118-87374-8) on www.wiley.com. It is also available via flatpack (978-1-118-87366-3) at online bookstores. This interactive version of McKinsey's DCF Valuation model allows readers to conduct, with the guidance of McKinsey's valuation techniques, their own valuation analysis of companies.
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.
Table of contents
About Inc. McKinsey & Company