Valuation: Measuring and Managing the Value of Companies

About

Valuation by McKinsey & Company consultants Koller, Goedhart, and Wessels is widely regarded as the practitioner's bible on corporate valuation. Now in its seventh edition, the book provides a rigorous yet practical framework for valuing companies, grounded in the principle that value creation is driven by a company's ability to earn returns on invested capital above the cost of capital. The book covers DCF valuation in depth, including forecasting techniques, WACC estimation, and terminal value calculation, as well as multiples-based valuation, scenario analysis, and valuation in special situations. For search fund investors and searchers, it provides the analytical foundation for assessing target companies and structuring deals that create value.