Valuation Workbook: Measuring and Managing the Valuation of Companies(Wiley Finance)

The #1 best-selling guide to business valuation, newly updated and revised Valuation Workbook is the companion book to the eighth edition of McKinsey's Valuation, the gold standard in measuring and managing valuation for more than 30 years. This workbook has been used by individuals and professors to gain a deeper understanding of valuation. Called "the best practitioners' guide to valuation" by The Financial Times and "the most influential contemporary books about the world economy" by The Economist, the newly revised eighth McKinsey's long tradition of excellence. In the book, a team of veteran McKinsey & Company professionals walk you through the foundations of valuation, advanced topics like valuing high-growth companies and digital assets, and managerial topics such as corporate portfolio strategy and acquisitions. You'll also discover: Questions and answers about the content in each chapter Best practices to apply valuation to business strategy questions and communicate with investors How to analyze and forecast performance, the cost of capital, and put it all together in a coherent valuation McKinsey & Company has been helping businesses, governments, non-profit organizations and other institutions grow and thrive for almost 100 years. Valuation's authors draw on that storied history to bring you the most relevant, accurate, intuitive, and practical guide to valuation on the market today.

Table of Contents:
About the Authors xi Introduction XIII Part One Questions 1 Why Value Value? 3 2 Finance in a Nutshell 5 3 Fundamental Principles of Value Creation 7 4 Risk and the Opportunity Cost of Capital 11 5 The Alchemy of Stock Market Performance 15 6 The Stock Market and Economic Fundamentals 19 7 The Stock Market Is Smarter than You Think 23 8 Return on Invested Capital 27 9 Growth 31 10 Frameworks for Valuation 35 11 Reorganizing the Financial Statements 39 12 Analyzing Performance and Competitive Position 43 13 Forecasting Performance 47 14 Estimating Continuing Value 53 15 Estimating the Cost of Capital 57 16 Moving from Enterprise Value to Value per Share 61 17 Analyzing the Results 65 18 Using Multiples 69 19 Valuation by Parts 73 20 Taxes 77 21 Nonoperating Items, Provisions, and Reserves 79 22 Leases 83 23 Retirement Obligations 87 24 Measuring Performance in Capital-Light Businesses 89 25 CFROI and Other Ways to Measure Return on Capital 93 26 Inflation 95 27 Cross-Border Valuation 99 28 Corporate Portfolio Strategy 103 29 Strategic Management: Analytics 107 30 Strategic Management: Governance, Processes, and Decision-Making 111 31 Mergers and Acquisitions 115 32 Divestitures 119 33 Digital Initiatives and Companies 123 34 Sustainability 125 35 Capital Structure, Dividends, and Share Repurchases 127 36 Investor Communications 131 37 Leveraged Buyouts 135 38 Venture Capital 139 39 High-Growth Companies 141 40 Flexibility and Options 143 41 Emerging Markets 147 42 Cyclical Companies 149 43 Banks 153 Part Two Solutions 1 Why Value Value? 159 2 Finance in a Nutshell 161 3 Fundamental Principles of Value Creation 163 4 Risk and the Opportunity Cost of Capital 165 5 The Alchemy of Stock Market Performance 167 6 The Stock Market and Economic Fundamentals 169 7 The Stock Market Is Smarter than You Think 171 8 Return on Invested Capital 173 9 Growth 175 10 Frameworks for Valuation 177 11 Reorganizing the Financial Statements 179 12 Analyzing Performance and Competitive Position 181 13 Forecasting Performance 183 14 Estimating Continuing Value 187 15 Estimating the Cost of Capital 191 16 Moving from Enterprise Value to Value per Share 193 17 Analyzing the Results 195 18 Using Multiples 197 19 Valuation by Parts 199 20 Taxes 201 21 Nonoperating Items, Provisions, and Reserves 203 22 Leases 205 23 Retirement Obligations 207 24 Measuring Performance in Capital-Light Businesses 209 25 CFROI and Other Ways to Measure Return on Capital 211 26 Inflation 213 27 Cross-Border Valuation 217 28 Corporate Portfolio Strategy 221 29 Strategic Management: Analytics 223 30 Strategic Management: Governance, Processes, and Decision-Making 225 31 Mergers and Acquisitions 227 32 Divestitures 229 33 Digital Initiatives and Companies 231 34 Sustainability 233 35 Capital Structure, Dividends, and Share Repurchases 235 36 Investor Communications 237 37 Leveraged Buyouts 241 38 Venture Capital 243 39 High-Growth Companies 245 40 Flexibility and Options 247 41 Emerging Markets 249 42 Cyclical Companies 251 43 Banks 253 Index 255

About the Author :
TIM KOLLER is a McKinsey partner and founder of McKinsey’s Strategy and Corporate Finance Insights team. In his 40 years of consulting, he has served clients globally on corporate strategy and capital markets, acquisitions and divestitures, and resource allocation. MARC GOEDHART is a senior expert in McKinsey’s Strategy and Corporate Finance practice and an endowed professor of corporate valuation at Rotterdam School of Management (RSM), Erasmus University. DAVID WESSELS is an adjunct professor of finance at the Wharton School of the University of Pennsylvania. He was named by Bloomberg Businessweek as one of America’s top business school instructors. MICHAEL CICHELLO is clinical professor in finance at the Smith School of Business at the University of Maryland and Academic Director of the Masters of Finance program. MCKINSEY & COMPANY is a global management consulting firm. McKinsey combines bold strategies and transformative technologies to help organizations innovate and achieve lasting gains in performance.