Valuation 8.0

Every financial executive should either have the book Valuation or have it on their physical or digital copy in their antilibrary. CFO Bookshelf is thrilled and honored to have the lead author of all eight editions of this foundational book on valuation, which is used in many financial curricula around the nation on college campuses. In this conversation, we hit on ROIC, growth, economic profit, long-term thinking, and the best way to read this book.

Episode Highlights

Before McKinsey: Stern Stewart
From version 1.0 to 8.0
Valuation 8.0 is part of Mark’s Sharpening the Saw books of 25
The Eric Lamarre story of reading the book from cover to cover
ROIC fundamentals are not a new concept
Unpacking ROIC’s numerator and denominator
ROIC’s revenue driver
ROIC thinking and the three stages of CEO thinking
The universal law of ROIC
The role of small company boards
Best-Owner Principle
Cost of capital in a private business

Valuation: Measuring and Managing the Value of Companies (Wiley Finance)

$71.49

Called “the best practitioners' guide to valuation” by The Financial Times and “the most influential contemporary books about the world economy” by The Economist, the newly revised eighth edition of McKinsey's long tradition of excellence. In the book, a team of veteran McKinsey & Company professionals guides you through the foundations of valuation, advanced topics such as valuing high-growth companies and digital assets, and managerial topics including corporate portfolio strategy and acquisitions.