Valuation Workbook

Introduction.Part One: Questions.1 Why Maximize Value?2 The Value Manager.3 Fundamental Principles of Value Creation.4 Do Fundamentals Really Drive the Stock Market?5 Frameworks for Valuation.6 Thinking about Return on Invested Capital and Growth.7 Analyzing Historical Performance.8 Forecasting Performance.9 Estimating Continuing Value.10 Estimating the Cost of Capital.11 Calculating and Interpreting Results.12 Using Multiples for Valuation.13 Performance Measurement.14 Performance Management.15 Creating Value through Mergers and Acquisitions.16 Creating Value through Divestitures.17 Capital Structure.18 Investor Communications.19 Valuing Multibusiness Companies.20 Valuing Flexibility.21 Cross-Border Valuation.22 Valuation in Emerging Markets.23 Valuing High-Growth Companies.24 Valuing Cyclical Companies.25 Valuing Financial Institutions.Part Two: Answers.1 Why Maximize Value?2 The Value Manager.3 Fundamental Principles of Value Creation.4 Do Fundamentals Really Drive the Stock Market?5 Frameworks for Valuation.6 Thinking about Return on Invested Capital and Growth.7 Analyzing Historical Performance.8 Forecasting Performance.9 Estimating Continuing Value.10 Estimating the Cost of Capital.11 Calculating and Interpreting Results.12 Using Multiples for Valuation.13 Performance Measurement.14 Performance Management.15 Creating Value through Mergers and Acquisitions.16 Creating Value through Divestitures.17 Capital Structure.18 Investor Communications.19 Valuing Multibusiness Companies.20 Valuing Flexibility.21 Cross-Border Valuation.22 Valuation in Emerging Markets.23 Valuing High-Growth Companies.24 Valuing Cyclical Companies.25 Valuing Financial Institutions.

TIM KOLLER is a partner at McKinsey & Company, Inc., and co-leader of its corporate finance and strategy practice. He specializes in restructuring, mergers and acquisitions, and corporate strategy.