About the Authors
Preface
Acknowledgments
Part One: Foundations of Value
1 Why Value Value?
2 Finance in a Nutshell
3 Fundamental Principles of Value Creation
4 Risk and the Cost of Capital
5 The Alchemy of Stock Market Performance
6 Valuation of ESG and Digital Initiatives
7 The Stock Market Is Smarter Than You Think
8 Return on Invested Capital
9 Growth
Part Two: Core Valuation Techniques
10 Frameworks for Valuation
11 Reorganizing the Financial Statements
12 Analyzing Performance
13 Forecasting Performance
14 Estimating Continuing Value
15 Estimating the Cost of Capital
16 Moving from Enterprise Value to Value per Share
17 Analyzing the Results
18 Using Multiples
19 Valuation by Parts
Part Three: Advanced Valuation Techniques
20 Taxes
21 Nonoperating Items, Provisions, and Reserves
22 Leases
23 Retirement Obligations
24 Measuring Performance in Capital-Light Businesses
25 Alternative Ways to Measure Return on Capital
26 Inflation
27 Cross-Border Valuation
Part Four: Managing for Value
28 Corporate Portfolio Strategy
29 Strategic Management: Analytics
30 Strategic Management: Mind-Sets and Behaviors
31 Mergers and Acquisitions
32 Divestitures
33 Capital Structure, Dividends, and Share Repurchases
34 Investor Communications
Part Five: Special Situations
35 Emerging Markets
36 High-Growth Companies
37 Cyclical Companies
38 Banks
39 Flexibility
Appendixes
A Discounted Economic Profit Equals Discounted Free Cash Flow
B Derivation of Free Cash Flow, Weighted Average Cost of Capital, and Adjusted Present Value
C Levering and Unlevering the Cost of Equity
D Leverage and the Price-to-Earnings Multiple
E Other Capital Structure Issues
F Technical Issues in Estimating the Market Risk Premium
G Global, International, and Local CAPM
H A Valuation of Costco Wholesale
I Two-Stage Formula for Continuing Value
Index
