Valuation: Measuring and Managing the Value of Companies, 6th edition
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Valuation: Measuring and Managing the Value of Companies, 6th edition

At the crossroads of corporate strategy and finance lies valuation. This book enables everyone, from the budding professional to the seasoned manager, to excel at measuring and maximizing shareholder and company value.

John Wiley & Sons, 2015 | Tim Koller, Marc Goedhart, David Wessels

The 6th edition of Valuation, now celebrating 25 years in print, has been thoroughly revised to reflect business conditions in today's volatile global economy. It provides insights on how to create, manage, and measure the value of an organization, including practical advice on:

  • analyzing historical performance, including reorganizing 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

Along with new case studies that illustrate valuation techniques and principles applied in real-world situations, the 6th edition has been updated to reflect new developments in corporate finance, changes in accounting rules, and an enhanced global perspective.

Valuation is a handbook that can help managers, investors, and students understand how to foster corporate "health" and create value for the future-goals that have never been more timely.

Valuation: Measuring and Managing the Value of Companies, 6th edition

About the authors

The authors are all current or former consultants of McKinsey & Company's corporate-finance practice. Collectively they have more than 70 years of experience in consulting and financial education.

Tim Koller

Tim Koller is a partner in McKinsey's New York office,where he leads a global team of corporate-finance expert consultants. In his 30 years in consulting, Tim has served clients globally on corporate strategy and capital markets, mergers and acquisitions (M&A) transactions, and value-based management. He leads the firm's research activities in valuation and capital markets. Before joining McKinsey, he worked with Stern Stewart & Company and with Mobil Corporation. He received his MBA from the University of Chicago.

Marc Goedhart

Marc Goedhart is a senior expert in McKinsey's Amsterdam office and leads the firm's Corporate Performance Center in Europe. Over the past 20 years, Marc has served clients across Europe on portfolio restructuring, capital markets, and M&A transactions. He taught finance as an assistant professor at Erasmus University in Rotterdam, where he also earned a PhD in finance.

David Wessels

David Wessels is an adjunct professor of finance at the Wharton School of the University of Pennsylvania. Named by Bloomberg Businessweek as one of America's top business school instructors, he teaches courses on corporate valuation and private equity at the MBA and executive MBAlevels. David is also a director in Wharton’s executive education group, serving on the executive development faculties of several Fortune 500 companies. A former consultant with McKinsey, he received his PhD from the University of California at Los Angeles.

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