The University Edition of Valuation 4e offers students and professors up-to-date information on valuing companies. It contains all the revisions of the main edition, plus end of chapter questions for the needs of the classroom.

The authors are all current or former consultants of McKinsey &
Company's corporate finance practice. Collectively they have
more than 50 years of experience in consulting and financial
education.

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 80 offices in more than 40
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. He leads the firm's Corporate Performance Center and
is a member of the leadership group of the firm's global
corporate finance practice. In his 20 years in consulting Tim has
served clients in North America and Europe on corporate strategy
and capital markets, M&A transactions, and value-based
management. He leads the firm's research activities in
valuation and capital markets. He was formerly with Stern Stewart
& Company, and Mobil Corporation. He received his MBA from the
University of Chicago.

Marc Goedhart is an associate principal in
McKinsey's Amsterdam office and a member of the leadership
group of the firm's corporate finance practice in Europe.
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 is an adjunct professor of finance at the
Wharton School of the University of Pennsylvania. Named by
Business Week as one of America's top business school
instructors, he teaches courses on investment banking and corporate
valuation at the MBA and Executive MBA levels. David is also a
director in Wharton's executive education group, serving on
the executive development faculties of several Fortune 500
companies. David, a former consultant with McKinsey, received his
PhD from the University of California at Los Angeles.

UNIVERSITY 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

Part One: Foundations of Value.

1. Why Maximize Value?

2. The Value Manager.

3. Fundamental Principles of Value Creation.

4. Do Fundamentals Really Drive the Stock Market?

Part Two: Core Valuation Techniques.

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.

Part Three: Making Value Happen.

13. Performance Measurement.

14. Performance Management.

15. Creating Value through Mergers and Acquisitions.

16. Creating Value through Divestitures.

17. Capital Structure.

18. Investor Communications.

Part Four: Advanced Valuation Issues.

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.

Appendix A: Economic Profit and the Key Value Driver
Formula.

Appendix B: Discounted Economic Profit Equals Discounted Free
Cash Flow.

Appendix C: Adjusted Present Value Equals Discounted Free Cash
Flow.

Appendix D: Levering and Unlevering the Cost of Equity.

Appendix E: Leverage and the Price-Earnings Multiple.

Index.