Valuation : measuring and managing the value of companies.

Cover -- Title Page -- Contents -- About the Authors -- Preface -- Why This Book -- Structure of the Book -- Valuation Spreadsheet -- Acknowledgments -- Part One Foundations of Value -- 1 Why Value Value? -- What Does It Mean to Create Shareholder Value? -- Can Stakeholder Interests Be Reconciled? -- Shareholder Capitalism Cannot Solve All Social Issues -- Consequences of Forgetting Value-Creation Principles -- Short-Termism Runs Deep -- This Book -- 2 Fundamental Principles of Value Creation -- The Relationship of Growth, ROIC, and Cash Flow -- Balancing ROIC and Growth to Create Value -- Real-World Examples -- Managerial Implications -- Economic Profit Combines ROIC and Size -- The Math of Value Creation -- Summary -- 3 Conservation of Value and the Role of Risk -- Conservation of Value -- Foundations of the Value Conservation Principle -- Managerial Implications -- Risk and Value Creation -- Price of Risk -- Level of Risk Exposure -- Summary -- 4 The Alchemy of Stock Market Performance -- Why Shareholder Expectations Become a Treadmill -- Real-World Effects of the Expectations Treadmill -- Decomposing TRS -- Understanding Expectations -- Managerial Implications -- 5 The Stock Market Is Smarter Than You Think -- Markets and Fundamentals: A Model -- Markets and Fundamentals: The Evidence -- What about Earnings? -- Earnings from Mergers and Acquisitions (M&A) -- Write-Downs -- Employee Stock Options -- Different Accounting Standards -- Earnings Management -- Earnings Volatility Doesnt Matter -- Meeting Consensus Earnings Estimates Doesn't Matter -- Earnings Guidance -- Diversification and the Conglomerate Discount -- Size and Value -- Market Mechanics Don't Matter -- Index Membership -- Cross-Listing -- Stock Splits -- Value Creation Is More Important than Value Distribution -- Summary -- 6 Return on Invested Capital -- What Drives ROIC?.