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The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network · 2025-05-30 · 58 min · 9,714 words

TIP725: First Principles of Valuation w/ Tim Koller

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You're listening to TIP. On today's episode, I'm joined by Tim Kohler to discuss all things valuation. Tim is the lead author of Valuation, Measuring and Managing the Value of Companies, which is the number one best-selling guide on business valuation. This book, now in its eighth edition, has sold more than 1 million copies and it's used as a textbook at top business schools such as Wharton and MIT.

As a partner at McKinsey <unk> Company, Tim combines broad cross-sector experience with decades of service to clients in value creation, corporate strategy, capital markets issues, and M<unk>A transactions. During this episode, we cover how companies create shareholder value, the common misconceptions related to creating value, how managers should think about return on invested capital, why it's so common for managers not to take a long-term approach, how return on invested capital impacts a company's valuation, how Tim thinks about the vast differences in returns we've seen in the US relative to Europe. his most commonly used valuation metrics and much more. Tim delivered a wealth of knowledge and insights related to valuation during this discussion, so with that I bring you today's episode with Tim Kohler. Since 2014 and through more than 180 million downloads, we've studied the financial markets and read the books that influence self-made billionaires the most.

We keep you informed and prepared for the unexpected. Now for your host, Clay Fink. Welcome to the Investors Podcast. I'm your host, Clay Fink, and today I'm happy to be joined by Tim Kohler. Tim, thank you so much for joining me here today.

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