Value: The Four Cornerstones of Corporate Finance eBook: Tim Koller, Richard Dobbs, Bill Huyett, McKinsey & Company Inc.: caite.info: Kindle Store. (Ebook free) Value: The Four Cornerstones of Corporate Finance. Value: The Four ebooks | Download PDF | *ePub | DOC | audiobook. 1 of 1 people found. caite.info: Value: The Four Cornerstones of Corporate Finance eBook: Tim Koller, Richard Dobbs, Bill Huyett, McKinsey & Company Inc.: Kindle Store.
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What are the four cornerstones of finance and how do they guide the creation of lasting corporate value? The first and guiding cornerstone is that companies. VALUE. THE FOUR. CORNERSTONES. OF CORPORATE. FINANCE. McKinsey & Company. Tim Koller. Richard Dobbs. Bill Huyett. JOHN WILEY & SONS, INC. Discusses the four foundational principles of corporate finance; Effectively applies the theory of value creation to our economy; Examines ways to maintain and.
Welcome back. With consultants deployed from more than ninety offices in over fifty countries, McKinsey advises companies on strategic, operational, organizational, financial, and technological issues. To view it, click here. How worth is assumed, assigned and manipulated. Simply put, value is created if the acquirer is a better manager of that asset than the target, and only then if the target is acquired for the right price. The Math of Value, pages 52 through 56 breaks down, "the core-of-value cornerstone as a simple formula along with its derivation. To create value, it boils down to grow the revenue or make more efficient use of the company's asset thus achieving a higher ROIC than cost of capital.
When a company outperforms, expectations rise, forcing it to do better just to keep up. The treadmill explains why the share prices of high performing companies sometimes falter, and vice versa.
No company has an objective, inherent value. A target business is worth one amount to one owner and other amounts to other potential owners—depending on their relative abilities to generate cash flow from the business.
Conventional wisdom segments investors into pigeonholes like growth and value, but these distinctions are erroneous.
The performance of stock markets and real economies are typically aligned, hardly ever perfectly aligned, and rarely very misaligned. Executives and investors who understand this are better able to make value-creating decisions. Stock market bubbles are rare and usually confined to specific industry sectors and companies.
Creating value in the longer run sometimes necessitates decisions that reduce earnings in the shorter run. It all depends on what type of growth a company achieves and what the returns on that growth are.
Sometimes companies can create value by selling even high performing businesses. But there are archetypal ways that acquirers can create value. Nothing in business is more clear yet complex than the imperative to manage risk.
Clear because risk matters greatly to the company, its board, its investors, and its decision makers. Complex because each of these groups has a different perspective. When it comes to financial structures, companies are best to keep them as simple as possible.
The trick is to cut through the clutter by making your management processes more granular and transparent. Undetected country. NO YES. The Four Cornerstones of Corporate Finance. Description About the Author Permissions Table of contents. If this is not done properly and shareholder value becomes a forgotten concept economies will not allocate its scarce capital efficiently and the well-being of our societies will decrease.
This is important and this is why I hope we have seen the birth of a new standard volume to be read.
Investors should read the book to become better owners. Corporate managements and those in the IR departments will gain a better understanding of why they are in business in the first place.
Mar 15, Sylv C rated it it was amazing. I really liked the first pages of the book, but the rest felt redundant. Feb 27, Chauncey rated it it was amazing. Nov 25, David Benkert rated it it was amazing. Very detailed accounts and empirical evidences on different aspects of corporate finance. This very clean book on the essential principles of value creation is targeted toward C level decision makers rather than investors. This focus makes it no less valuable to anyone who wants to understand corporate level strategy, the stock market or investing.
Author and McKinsey partner Tim Koehler does an excellent 1 minute and 23 second introduction to this book on Amazon. You can link to it here http: Part One covers the four cornerstones. The Four Cornerston This very clean book on the essential principles of value creation is targeted toward C level decision makers rather than investors. The Four Cornerstones of Value are: The Core of Value: A business's value is driven by its growth and return on capital, and the resulting cash flows.
Chapter 2 The Conservation of Cash Flow: Value is created when companies generate higher cash flows, not by simply rearranging investors' claims on cash flows. Chapter 3 The Expectations Treadmill: Movements in company share price reflect changes in the stock market's expectations, not just underlying performance. Chapter 4 The Best Owner Principal: The Value of a business is not absolute, rather, depends on who is managing it and the strategy pursued.
Part Three Covers Managing Value Creation This section addresses how C level executives should apply the principles of the first two parts to manage value. I like to listen to audio books every day, but I knew there were many visual elements of the book which add greatly to the overall content.
I decided to get the audio download with the accompanying 54 page pdf. All the frequently referenced exhibits are on pages 2 through 51 of the pdf. Appendix A: The Math of Value, pages 52 through 56 breaks down, "the core-of-value cornerstone as a simple formula along with its derivation.
Some people could find listening to audio of a book that is so saturated with relevant illustrations unproductive, but it works very well for my learning style, especially since I knew in advance I would follow my listening with a quick re-read of the hard-cover version sometime within the next month.
I wish more illustration rich books would allow this option. The absorption level really goes up with a second learning method audio then visual. There is also an accompanying workbook, which I haven't purchased.
Apr 05, Sam Motes rated it really liked it Shelves: In Value, some career McKinsey management consultants share the cornerstones they see that business use to build value for their stock holders.
The authors do this by spending time describing how the markets work by discussion the different classes of investors and how they influence the markets. They then spend the rest of the book describing how the leaders of the company drive value by building on the c In Value, some career McKinsey management consultants share the cornerstones they see that business use to build value for their stock holders.
They then spend the rest of the book describing how the leaders of the company drive value by building on the cornerstones. Mar 24, Brian Zheng rated it really liked it.
Since the book is written by McKinsey, it's only fair that the target audience of the book is company management. To create value, it boils down to grow the revenue or make more efficient use of the company's asset thus achieving a higher ROIC than cost of capital.
Despite so many shareholder unfriendly management out there, I have to say that sometimes the financial society gives too little credit to the management because it's not that easy to grow a business and create sustainable value witho Since the book is written by McKinsey, it's only fair that the target audience of the book is company management. Despite so many shareholder unfriendly management out there, I have to say that sometimes the financial society gives too little credit to the management because it's not that easy to grow a business and create sustainable value without many angry customers and receiving retaliation from competitors.
Jan 20, Ali rated it really liked it. I wanted to learn about corporate finance with minimum effort. Auditing a class or reading a textbook were out of options. I was looking for an audio book. Listening to this book while driving worked for me. I had some background in finance. Although there were references to the graphs or equations in the pdf companion of the audiobook, I could follow the arguments well without seeing them.
I recommend this book to people interested in knowing how the finance of big corporations work. No backg I wanted to learn about corporate finance with minimum effort.
No background is needed. If you are listening to the audio book, play it at x1. Nov 07, Joseph rated it liked it. Jan 14, Phil Toop rated it really liked it Shelves: May 13, Nora rated it really liked it Shelves: A highly readable book that makes a lot of sense. Explains with examples which activities do and, more importantly, do not create value for a company. From their summary, "Value is created when companies generate higher cash flows, not by simply rearranging investors' claims on cash flows".
This is by far the best finance book I've read in a long, long time. Can't say enough good about it!
Jul 28, Felicia Vidito rated it liked it. A little too over my head but read this for my Finance course. If I was a little more Finance-lingo savvy maybe I'd rate it higher. I think finance-minded folks would really enjoy the book. Mar 14, Dax rated it liked it.
I wanted to give more than 3, but not quite 4 stars. This is a good book that is well written. It just isn't as earth shattering as I hoped it would be. May 02, Kiddonne rated it really liked it. The case studies were particularly well explained, though one might argue there are always more facets to one situation.
Jul 26, Steve rated it it was amazing. Best book to understand how companies create value and how investors should measure it. Apr 07, Drew Maliniak rated it liked it. Required reading. Sep 22, Stela rated it it was amazing Shelves: Clean to the point, with many examples from the real life, this book is easy to read and understand and still very educational. A must-read for corporate managers. Jan 21, Kevinthorson rated it really liked it. StraightforwArd and short overview of key principles of company values.
Apr 23, Stephanie rated it really liked it. Good book. Glad I had my brothers Brian and Eric to help me through it. Four Cornerstone: