"The core of the problem is that we live in a world that is obsessed with outcomes but indifferent to the process that produced them. If we want to improve our judgment, we must focus on the process. We must recognize that a single forecast is just a data point in a long series. To be a superforecaster, you must be 'well-calibrated.' You must ensure that when you say there is a 70% chance of something happening, it actually happens 70% of the time. This requires a 'probabilistic' habit of mind—the willingness to see the world not as a series of certainties, but as a series of probabilities."

This book, “Valuation: Measuring and Managing the Value of Companies,” has been the foremost resource for measuring company value for nearly three decades. Now in its seventh edition, this acclaimed volume continues to help financial professionals around the world gain a deep understanding of valuation and help their companies create, manage, and maximize economic value for their shareholders.

Clear, accessible chapters cover the fundamental principles of value creation, analyzing and forecasting performance, capital structure and dividends, valuing high-growth companies, and much more. The Financial Times calls the book “one of the practitioners’ best guides to valuation.” 

Managers and investors place big bets and take large risks based on the valuation models discussed in this book. They are willing to make those investments and take those risks because they expect to earn sufficient cash in the future from these investments to create value for their companies or superior returns for their investment portfolios. The valuation models discussedin this book provide the conceptual frameworks and tools to conduct these analyses.