Valuation, University Edition, Fifth Edition is filled with expert guidance that managers at all levels, investors, and students have come to trust. It contains a solid framework for valuation: analyzing historical performance, including reorganizing a company's financial statements to reflect economic rather than accounting performance; forecasting performance, with emphasis on not just the mechanics of forecasting but also how to think about a company's future economics; estimating the cost of capital with practical tips that aren't found in textbooks; interpreting the results of a valuation in light of a company's competitive situation; and linking a company's valuation multiples to the core drivers of its performance. Valuation, University Edition, Fifth Edition remains true to its roots with an extensive discussion on the complexity of measuring corporate performance to assess historical financial results properly and to gain insight into a company's ability to create value in the future (its corporate "health"). New chapters are dedicated to finding the real engines behind value creation, whether it be key management decisions or mergers and acquisitions. The authors have also written a new chapter on corporate finance fundamentals that they feel are missing from everyday business decisions. The university edition contains the same text as the cloth edition, but is well-suited for the college market with its suite of ancillary tools for professors to use in the classroom.