Valuation: Measuring and Managing the Value of Companies by McKinsey & Company Inc. (4th Ed)
Part OneFoundations of Value
1Why Maximize Value?3
2The Value Manager23
3Fundamental Principles of Value Creation47
4Do Fundamentals Really Drive the Stock Market?69
Part TwoCore Valuation Techniques
5Frameworks for Valuation101
6 Thinking about Return on Invested Capital and Growth 133
7Analyzing Historical Performance159
8Forecasting Performance229
9 Estimating Continuing Value 271
10Estimating the Cost of Capital291
11Calculating and Interpreting Results331
12Using Multiples for Valuation361
Part ThreeMaking Value Happen
13Performance Measurement383
14Performance Management405
15Creating Value through Mergers and Acquisitions427
16Creating Value through Divestitures453
17Capital Structure475
18Investor Communications509
xviiiCONTENTS
Part FourAdvanced Valuation Issues
19Valuing Multibusiness Companies531
20Valuing Flexibility543
21Cross-Border Valuation575
22Valuation in Emerging Markets605
23Valuing High-Growth Companies637
24Valuing Cyclical Companies653
25Valuing Financial Institutions663
Appendix AEconomic Profit and the Key Value
Driver Formula 693
Appendix BDiscounted Economic Profit Equals Discounted
Free Cash Flow697
Appendix CAdjusted Present Value Equals Discounted Free
Cash Flow701
Appendix DLevering and Unlevering the Cost of Equity707
Appendix ELeverage and the Price-Earnings Multiple715
Index 719