Valuation : measuring and managing the value of companies

Intro -- Valuation Measuring and Managing the Value of Companies -- Contents -- About the Authors -- Preface -- Acknowledgments -- Part One. Foundations of Value -- 1. Why Value Value? -- What Does It Mean to Create Shareholder Value? -- Short-Termism Runs Deep -- Shareholder Capitalism Cannot Solve Every Challenge -- Can Stakeholder Interests Be Reconciled? -- Consequences of Forgetting Value-Creation Principles -- This Book -- 2. Finance in a Nutshell -- The Early Years -- A New Concept -- Should Lily and Nate Try to Maximize ROIC? -- Going Public -- Expansion into Related Formats -- Some Lessons -- 3. Fundamental Principles of Value Creation -- The Relationship of Growth, ROIC, and Cash Flow -- Balancing ROIC and Growth to Create Value -- Some Examples -- Implications for Managers -- Economic Profit Combines ROIC and Size -- Conservation of Value -- Conserving Value: A Brief History -- A Tool for Managers -- The Math of Value Creation -- Summary -- 4. Risk and the Cost of Capital -- Cost of Capital Is an Opportunity Cost -- Companies Have Little Control over Their Cost of Capital -- Create Better Forecasts, Not Ad Hoc Risk Premiums -- Decide How Much Cash Flow Risk to Take On -- Decide Which Types of Risk to Hedge -- Summary -- 5. The Alchemy of Stock Market Performance -- Why Shareholder Expectations Become a Treadmill -- The Treadmill's Real-World Effects -- Decomposing TSR -- Understanding Expectations -- Implications for Managers -- 6. Valuation of ESG and Digital Initiatives -- A Common Framework -- Environmental, Social, and Governance (ESG) Concerns -- Revenue Growth -- Cost Reductions -- Reduced Regulatory and Legal Interventions -- Employee Productivity Uplift -- Investment and Asset Optimization -- Digital Initiatives -- Measuring the Value of Digitization -- Paths to Improved Performance -- Closing Thoughts.