Overview

The #1 best-selling guide to business valuation, newly updated and revised Valuation: Measuring and Managing the Value of Companies has been the gold standard in measuring and managing company value for more than 30 years. Now in its eighth edition, this acclaimed volume continues to help corporate executives, bankers, students, and other financial professionals around the world gain a deep understanding of valuation as well as allow their companies to create and maximize economic value. 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: Clear, accessible chapters with detailed guidance on the fundamental principles of value creation 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.

Full Product Details

Author:   Tim Koller (McKinsey's Strategy and Corporate Finance Insights) ,  Marc Goedhart (McKinsey's Strategy and Corporate Finance Insights; Erasmus University) ,  David Wessels (University of Pennsylvania) ,  McKinsey & Company Inc.
Publisher:   John Wiley & Sons Inc
Imprint:   John Wiley & Sons Inc
Edition:   8th edition
Dimensions:   Width: 19.10cm , Height: 5.80cm , Length: 25.90cm
Weight:   1.610kg
ISBN:  

9781394279517

ISBN 10:   1394279515
Pages:   976
Publication Date:   10 July 2025
Audience:   Professional and scholarly ,  Professional & Vocational
Format:   Hardback
Publisher's Status:   Active
Availability:   Out of stock  
The supplier is temporarily out of stock of this item. It will be ordered for you on backorder and shipped when it becomes available.

Table of Contents

About the Authors ix Preface xi Acknowledgments xv Part One Foundations of Value 1 Why Value Value? 3 2 Finance in a Nutshell 13 3 Fundamental Principles of Value Creation 23 4 Risk and the Opportunity Cost of Capital 49 5 The Alchemy of Stock Market Performance 63 6 The Stock Market and Economic Fundamentals 77 7 The Stock Market Is Smarter Than You Think 97 8 Return on Invested Capital 117 9 Growth 147 Part Two Core Valuation Techniques 10 Frameworks for Valuation 171 11 Reorganizing the Financial Statements 201 12 Analyzing Performance 235 13 Forecasting Performance 255 14 Estimating Continuing Value 283 15 Estimating the Cost of Capital 303 16 Moving from Enterprise Value to Value per Share 333 17 Analyzing the Results 355 18 Using Multiples 365 19 Valuation by Parts 385 Part Three Advanced Valuation Techniques 20 Taxes 407 21 Nonoperating Items, Provisions, and Reserves 423 22 Leases 439 23 Retirement Obligations 455 24 Measuring Performance in Capital-Light Businesses 465 25 CFROI and Other Ways to Measure Return on Capital 481 26 Inflation 491 27 Cross-Border Valuation 511 Part Four Managing for Value 28 Corporate Portfolio Strategy 531 29 Strategic Management: Analytics 551 30 Strategic Management: Governance, Processes, and Decision Making 573 31 Mergers and Acquisitions 589 32 Divestitures 617 33 Digital Initiatives and Companies 633 34 Sustainability 653 35 Capital Structure, Dividends, and Share Repurchases 671 36 Investor Communications 703 Part Five Special Situations 37 Leveraged Buyouts 729 38 Venture Capital 749 39 High-Growth Companies 763 40 Flexibility and Options 779 41 Emerging Markets 815 42 Cyclical Companies 833 43 Banks 843 Appendix A Discounted Economic Profit Equals Discounted Free Cash Flow 865 Appendix B Derivation of Free Cash Flow, Weighted Average Cost of Capital, and Adjusted Present Value 869 Appendix C Levering and Unlevering the Cost of Equity 875 Appendix D Leverage and the Price-to-Earnings Multiple 883 Appendix E Other Capital Structure Issues 887 Appendix F Technical Issues in Estimating the Market Risk Premium 891 Appendix G Global, International, and Local CAPM 895 Appendix H Two-Stage Formula for Continuing Value 903 Appendix I A Valuation of Costco Wholesale 905 Index 931

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Author Information

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. 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.

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