Product Description

Hailed by financial professionals worldwide as the single best guide of its kind, Valuation, Fourth Edition with CD-ROM combines is thoroughly revised and expanded to reflect business conditions in today’s volatile global economy. Valuation provides up-to-date insights and practical advice on how to create, manage, and measure an organization’s value. Along with all-new case studies that illustrate how valuation techniques and principles are applied in real-world situations, this comprehensive guide has been updated to reflect the events of the Internet bubble and its effect on stock markets, new developments in academic finance, changes in accounting rules (both U. S. and IFRS), and an enhanced global perspective. This package contains a solid framework that managers at all levels, investors, and students have come to trust.

Product Details

• Amazon Sales Rank: #3006 in Books
• Published on: 2005-06-08
• Number of items: 1
• Binding: Hardcover
• 768 pages

From the Inside Flap
At the crossroads of corporate strategy and finance lies valuation. And in today's economy—whether you're a seasoned manager or a budding business professional—it's essential to excel at measuring, managing, and maximizing shareholder and company value. Valuation, hailed by financial professionals worldwide as the single best guide of its kind, will show you how to do just that and much more.

Thoroughly revised and expanded to reflect business conditions in today's volatile global economy, Valuation, Fourth Edition continues the tradition of its bestselling predecessors by providing up-to-date insights and practical advice on how to create, manage, and measure the value of an organization. Along with all-new case studies that illustrate how valuation techniques and principles are applied in real-world situations, this comprehensive guide has been updated to reflect the events of the Internet bubble and its effect on stock markets, new developments in academic finance, changes in accounting rules (both U. S. and IFRS), and an enhanced global perspective.

Valuation, Fourth Edition is filled with expert guidance that managers at all levels, investors, and students have come to trust. It contains a solid framework for valuation:

• Analyzing historical performance, including reorgan-izing 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
• Linking a company's valuation multiples to the core drivers of its performance

Valuation, Fourth Edition remains true to its roots with an extensive discussion on the complexity of measuring corporate performance to assess historical financial results properly and to gain insight into a company's ability to create value in the future (its corporate "health"). A complementary chapter advises managers how to run companies to create long-term value, and a new chapter explores ways to improve communication with financial markets.

Valuation, Fourth Edition stands alone in this field with its reputation of quality and consistency. The author team of Tim Koller, Marc Goedhart, and David Wessels has taken the latest insights from their experiences working with global companies and created one of the most engaging and insightful guides to valuation. If you want to hone your valuation skills today and improve them for years to come, look no further than the Fourth Edition of Valuation.

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. With consultants deployed from over eighty offices in more than forty countries, McKinsey advises companies on strategic, operational, organizational, financial, and technological issues. The firm has extensive experience in all major industry sectors and primary functional areas, as well as in-depth expertise in high-priority areas for today's business leaders.

From the Back Cover
VALUATION

Fourth Edition

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 Chief Financial Officer, Novartis AG

"Valuation gets to the heart of how to measure and manage value in a company. Whether you are evaluating an acquisition, restructuring a corporation, or formulating strategy, this book will help you do it well."
—John A. Manzoni, Chief Executive Refining and Marketing, BP plc

Praise for the First Edition

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

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

About the Author
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. With consultants deployed from over eighty offices in more than forty countries, McKinsey advises companies on strategic, operational, organizational, financial, and technological issues. The firm has extensive experience in all major industry sectors and primary functional areas, as well as in-depth expertise in high-priority areas for today's business leaders.

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 an associate principal 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.

Customer Reviews

Senior Manager at Accenture
The workbook force you to look at the information you received from "Valuation" from different perspective and you will recognize what you missed or misunderstood. Also, application of "Valuation" concepts in a controlled environment will make you confident that you are applying "Valation" correctly/appropriately in the real life. This is important since the matter being discussed is directly related to money!

The CD mentioned in the summary is disappointingly not included with this book....
The book itself is excellent and exactly what I was hoping for.

Amazon Customer services assured me that the CD was included and even sent me a second copy but there was no CD again..... I thought it was too much of a bargain to be true...and it was !! I will scrutinise the summary more diligently next time ;)

Good read but brush up on your math
I found this book to be a great read in learning about all the various aspects that go into the valuation of a company. It does a great job of making you look at what makes a company tick and how it affects a valuation.

The base of the book is the DCF (Discounted Cash Flows) model. It describes many of the formulas used. I am not a math major or anything so many of them were over my head. The authors did a good job of describing the formulas but if you don't have a good solid foundation it will take a while to break down the formulas.

I did come across many areas in the book that justifies any kind of forecasting is mediocre at best. It's not an exact science and any kind of model is just that - a model of a perfect world. The world is not perfect but perhaps a DCF model is the closest you'll get to being real in a perfect storm.