Foundations of Corporate Valuation and Value Creation

Explore the essential principles of corporate valuation, including value creation, risk, cost of capital, and the impact of market performance. Gain a solid grounding in the financial concepts that underpin effective valuation and strategic decision-making. This course introduces the core concepts of valuation, focusing on the relationship between growth, return on invested capital, and shareholder value. Learners will examine the fundamentals of risk, cost of capital, and the influence of stock market expectations, as well as the valuation of ESG and digital initiatives. By the end of the course, participants will understand how value is created and measured, and how these principles guide financial strategy and performance. The course combines clear explanations of foundational valuation concepts with real-world examples and practical analysis. Learners will engage with readings, videos, and quizzes to reinforce understanding and apply key ideas to business scenarios. This course is part one of a three-course Specialization designed to provide a comprehensive learning pathway in this subject area. While it delivers standalone value and practical skills, learners seeking a more integrated and in-depth progression may benefit from completing the full Specialization. From Valuation Copyright © 1990, 1994, 2000, 2005, 2010, 2015, 2020 by McKinsey & Company. All rights reserved. Used by arrangement with John Wiley & Sons, Inc.