avatar

TIP725: First Principles of Valuation w/ Tim Koller

We Study Billionaires - The Investor’s Podcast Network
We Study Billionaires - The Investor’s Podcast Network
Episode • May 30 • 1h 2m

On today’s episode, Clay is joined by Tim Koller to discuss all things valuation.

Tim is the lead author of Valuation: Measuring and Managing the Value of Companies which is the #1 best-selling guide to business valuation. This book—now in its eighth edition—has sold more than one million copies, and is used as a textbook at top business schools such as Wharton School, University of Chicago, MIT, INSEAD, Tuck School of Business, and Northwestern University.

As a Partner at McKinsey & Company, Tim combines broad cross-sector experience with decades of service to clients in value creation, corporate strategy, capital-markets issues, and M&A transactions.


IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:45 - How companies create shareholder value.

05:13 - The common misconceptions related to creating shareholder value.

13:54 - How managers should think about return on invested capital.

28:08 - Why it’s so common for managers to not take a long-term approach.

33:16 - How return on invested capital impacts a company’s valuation.

46:30 - How Tim thinks about the vast differences in returns we’ve seen in the US relative to Europe.

And so much more!


Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.


BOOKS AND RESOURCES


NEW TO THE SHOW?


SPONSORS

Support our free podcast by supporting our ⁠⁠⁠⁠⁠⁠⁠sponsors⁠⁠⁠⁠⁠⁠⁠:


HELP US OUT!

Help us reach new listeners by leaving us a ⁠⁠⁠⁠⁠⁠rating and review⁠⁠⁠⁠⁠⁠ on ⁠⁠⁠⁠⁠⁠Spotify⁠⁠⁠⁠⁠⁠! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!


Support our show by becoming a premium member!

https://premium.theinvestorspodcast.com/

Support our show by becoming a premium member! ⁠⁠⁠⁠https://theinvestorspodcastnetwork.supportingcast.fm⁠

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Switch to the Fountain App