61 Posts found for Author: Tim Koller

No business has an inherent value in and of itself; it has a different value to different owners or potential owners—a value based on how they manage it and what strategy they pursue.

Content: Quotation | Authors: Bill Huyett, Richard Dobbs, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management, Strategy

Many executives strive for stable earnings growth, but research shows that investors don’t worry about variability.

Content: Article | Authors: Bin Jiang, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management

In this video presentation, McKinsey partner Tim Koller explores the four guiding principles of corporate finance that all executives can use to home in on value creation when they make strategic decisions.

Content: Multimedia Content | Author: Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management

Good companies haven’t always been good investments. Total returns to shareholders may not necessarily be a good measure of management performance. How fast is your treadmill moving?

Content: Article | Authors: Richard F. Dobbs, Tim Koller | Source: McKinsey Quarterly | Subject: Finance

If inflation rises again, companies will have to do more than just match it to keep up—they’ll have to beat it.

Multimedia bonus: An interactive exhibit allows you to see over time how much a company’s earnings must increase in order to keep cash flow stable.

Content: Article | Authors: David Wessels, Marc H. Goedhart, Tim Koller | Source: McKinsey Quarterly | Subject: Finance

Companies find growth enticing, but a strong return on invested capital is more sustainable.

Content: Article | Authors: Bin Jiang, Bing Cao, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management

Companies provide earnings guidance with a variety of expectations—and most of them don’t hold up.

Content: Article | Authors: Peggy Hsieh, S. R. Rajan, Tim Koller | Source: McKinsey Quarterly | Subject: Finance

Value-based management provides a clear metric – discounted future cash flow – to guide decisions at all levels of an organization: a business unit leader using this approach may pursue value in financial terms; a functional manager could concentrate on customer service, market share, product quality, or productivity; and a manufacturing manager might focus on costs per unit, cycle times, or defect rates.

But this … [ Read more ]

Content: Article | Author: Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management

Once companies reach a certain size, setting realistic performance aspirations gets a bit trickier.

Content: Article | Authors: Bin Jiang, Tim Koller | Source: McKinsey Quarterly | Subject: Management

In the short term, emotions influence market pricing. A simple model explains short-term deviations from fundamentals.

Content: Article | Authors: Bin Jiang, Marc H. Goedhart, Tim Koller | Source: McKinsey Quarterly | Subject: Finance

Total Returns to Shareholders (TRS or TSR) doesn’t reflect a company’s performance or health. What does?

Content: Article | Authors: Richard Dobbs, Tim Koller | Source: McKinsey Quarterly | Subject: Finance | Industry: Investing

Companies are what they are, not what their executives want them to be perceived as being. But management can improve the match between share prices and intrinsic value.

Content: Article | Author: Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management

Discounted cash flow valuations are the best way to assess the value of projects, but they are only as accurate as the forecasts behind them. A careful review of a company’s multiples–and those of its competitors–can help verify those underlying forecasts. However, executives must be critical consumers of published multiples and probe unexpected differences.

Content: Article | Authors: David Wessels, Marc H. Goedhart, Tim Koller | Source: McKinsey Quarterly | Subject: Finance

Dramatic stock market gyrations during and since the 1990s have encouraged advocates of behavioral-finance theories, which hold that market values can systematically deviate from economic fundamentals. Evidence shows, however, that such events are limited and that market values eventually return to fundamental levels.

Content: Article | Authors: David Wessels, Marc H. Goedhart, Tim Koller | Source: McKinsey Quarterly | Subject: Finance

Good accounting results and rising share prices can mask trouble ahead, and companies can create substantial value despite falling share prices. Developing a holistic picture of the health of a company-its ability to generate and sustain value-is difficult but doable.

Content: Article | Authors: Richard Dobbs, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management

Valuations are linked to growth. So why are they lower in high-growth markets in Asia?

Content: Article | Authors: Marc H. Goedhart, Nicolas C. Leung, Tim Koller | Source: McKinsey Quarterly | Subject: International – Asia

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What counts isn’t the bottom line but rather how it is calculated.

Content: Article | Author: Tim Koller | Source: McKinsey Quarterly | Subjects: Accounting, Finance | Industry: Investing

As investors home in on business fundamentals and credible accounting, the CFO’s traditional oversight of planning and performance takes on new urgency.

Content: Article | Authors: Jonathan Peacock, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management