If organisations are to achieve the ultimate corporate goal of maximising shareholder value, then understanding valuation is vitally important. Yet the majority of managers have ignored the area of corporate valuation for a long time, despite the fact that a firm's value is the ultimate measurement of the health and prosperity of a company INDICE1 Introduction 1 2 Presentation of Model Company 3 When Do You Need to Value a Company? 3.1 Raising capital for growth 3.2 Creating an incentive programme to keep and attract employees 3.3 Executing a merger, acquisition or divestiture 3.4 Conducting an initial public offering (IPO) 3.5 Summary 4 Company Valuation # An Overview 4.1 Theoretical overview 4.2 The most important valuation models 4.3 What models to use? 4.4 Summary 5 Ratio-based Valuation 5.1 Classification of multiples 5.2 Finding your multiple 5.3 Different multiples 5.4 How to find input data for multiple valuations? 5.5 Summary 6 Discounted Cash Flow Valuation 6.1 Estimating the cost of capital - WACC 6.2 Calculating free cash flow 6.3 Computing terminal value 6.4 Discounting and final corporate value 6.5 The most important variables in a DCF analysis 6.6 The DCF approach # only a calculation machine 6.7 Checking your assumptions 6.8 Summary 7 Underlying Analysis and Key Value Drivers 7.1 What is a value driver? 7.2 How to identify key value drivers 7.3 Structuring the underlying analysis 7.4 Generic operational value drivers 7.5 Framework for the underlying analysis 7.6 Temporary monopolies # an additional tool for the underlying analysis 7.7 Summary 8 How to Value Your Company in Practice # An Example 8.1 Underlying analysis of Mobitronics 8.2 DCF valuation of Mobitronics 8.3 Scenario analysis 8.4 Checking the underlying assumptions 8.5 Multiple-based valuation of Mobitronics 8.6 Piecing it all together # the value of the company! 8.7 Summary 9 Value-based Management 9.1 Strategy development 9.2 Target setting 9.3 Action plans/budgets and training 9.4 Incen