fundamental principles of value creation

《fundamental principles of value creation》由会员上传分享，免费在线阅读，更多相关内容在工程资料-天天文库。

1、P1:OTA/XYZP2:ABCc02JWBT347/MckinseyJune10,201011:5PrinterName:Hamilton2FundamentalPrinciplesofValueCreationInChapter1,weintroducedthefundamentalprinciplesofcorporatefinance.Companiescreatevaluebyinvestingcapitaltogeneratefuturecashflowsatratesofreturnthatexceedth

2、eircostofcapital.Thefastertheycangrowanddeploymorecapitalatattractiveratesofreturn,themorevaluetheycreate.Themixofgrowthandreturnoninvestedcapital(ROIC)1relativetothecostofcapi-taliswhatdrivesthecreationofvalue.Acorollaryofthisprincipleistheconser-vationofvalue

3、:anyactionthatdoesn’tincreasecashflowsdoesn’tcreatevalue.Theprinciplesimplythatacompany’sprimarytaskistogeneratecashflowsatratesofreturnoninvestedcapitalgreaterthanthecostofcapital.Followingtheseprincipleshelpsmanagersdecidewhichinvestmentswillcre-atethemostvalue

4、forshareholdersinthelongterm.Theprinciplesalsohelpinvestorsassessthepotentialvalueofalternativeinvestments.Managersandinvestorsalikeneedtounderstandindetailwhatrelationshipstietogethercashflows,ROIC,andvalue;whatconsequencesarisefromtheconservationofvalue;andhow

5、tofactoranyrisksattachedtofuturecashflowsintotheirdecisionmaking.Thesearethemainsubjectsofthischapter.Thechaptercon-cludesbysettingouttherelationshipsbetweencashflows,ROIC,andvalueinthekeyvaluedriverformula—theequationunderpinningdiscountedcashflow(DCF)valuationin

6、boththeoryandpractice.GROWTHANDROIC:DRIVERSOFVALUECompaniescreatevaluefortheirownersbyinvestingcashnowtogeneratemorecashinthefuture.Theamountofvaluetheycreateisthedifference1Asimpledefinitionofreturnoninvestedcapitalisafter-taxoperatingprofitdividedbyinvestedcapi

7、tal(workingcapitalplusfixedassets).ROIC’scalculationfromacompany’sfinancialstatementsisexplainedindetailinChapters6and7.17P1:OTA/XYZP2:ABCc02JWBT347/MckinseyJune10,201011:5PrinterName:Hamilton18FUNDAMENTALPRINCIPLESOFVALUECREATIONEXHIBIT2.1–GrowthandROICDriveValu

8、eReturnoninvestedcapitalCashflowRevenuegrowthValueCostofcapitalbetweencashinflowsandthecostoftheinvestmentsmade,adjustedtoreflectthefactthattomorrow’scashflowsareworthlessthant