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Title: Valuation: Measuring and Managing the Value of Companies, Fourth Edition
ISBN: 0471702188
Author:
McKinsey & Company Inc.
Tim Koller
Marc Goedhart
David Wessels
Publicate Date: 2005-06-08
Publish: 2005-06-08
List Price: $85.00
Average Customer Rating: 4.5
Format: Hardcover
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Amazon Lowest New Price: $47.11
Amazon Lowest Used Price: $45.00
Amazon Merchant Price: $53.55
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| Customer Review: |
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1: The bridge between management and finance
As a management consultant, this book bridges between management activities and financial performance.It makes sense of an organizations' day-to-day activities, from the investors'/organization owners' point of view.
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2: Book should be retitled valueing a company purely on the basis of its past cash flow
This is a good intro to give the basics of valuation for "old economy" businesses. It determines the valuation of companies based almost exclusively on their cash flow over the previous few years (i.e., 3, 5 and 7 year periods) to the analysis. Unfortunately it ignores (completely) too many issues that play an extremely important role in valuation. For example, the quality, background, knowledge of management, the products the company manufactures, the markets for these products, macroeconomic conditions, intellectual property, market position (i.e., oligopolistic? Is entry/exit difficult in the industry?). Not one of these issues is even touched upon!!! The authors seem to be implying that these issues are irrelevant!! Only the cash flow over the previous few years forecast forward (i.e., discounted for present value) matters according to the book!!! Perhaps this type of mentality explains why the overwhelming majority of mergers and acquistions fail!!!!
If you are looking purely for a way to use past cash flows to determine a company's "value" this is the book for you. If you are looking for a discussion of just about any other factor affecting valuation, forget it.
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3: Valuation Review
The delivery took three times as long as Amazon promised and the book was damaged when I recieved it. Also, it was missing content (i.e. End of chapter questions.)
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4: Excellent
This was the first time i purchased a book online. Transaction was simple and services were prompt.
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5: Senior Manager at Accenture
The workbook force you to look at the information you received from "Valuation" from different perspective and you will recognize what you missed or misunderstood. Also, application of "Valuation" concepts in a controlled environment will make you confident that you are applying "Valation" correctly/appropriately in the real life. This is important since the matter being discussed is directly related to money!
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