Foundations of Corporate Valuation and Value Creation
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Foundations of Corporate Valuation and Value Creation
This course is part of Corporate Valuation and Financial Analysis Specialization
Instructor: Wiley Skills Network
Included with
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Recommended experience
Recommended experience
What you'll learn
Understand how growth, ROIC, and cost of capital drive corporate valuation and shareholder value.
Evaluate risk, market expectations, and their impact on financial performance and valuation decisions.
Apply valuation principles to ESG and digital investments in real-world business scenarios.
Skills you'll gain
- Corporate Finance
- Cash Flows
- Governance
- Financial Analysis
- Finance
- Risk Management
- Return On Investment
- Sustainable Business
- Digital Analysis
- Technology Strategies
- Business Strategies
- Corporate Strategy
- Market Analysis
- Financial Market
- Corporate Sustainability
- Investments
- Risk Appetite
- Performance Measurement
- Environmental Social And Corporate Governance (ESG)
- Business Valuation
Details to know
May 2026
9 assignments
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There are 9 modules in this course
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 Β© 1990, 1994, 2000, 2005, 2010, 2015, 2020 by McKinsey & Company. All rights reserved. Used by arrangement with John Wiley & Sons, Inc.
This module explores the foundational principles of value creation in business, examining the importance of long-term strategies over short-term gains. Learners will investigate the roles of shareholders and stakeholders, the pitfalls of short-termism, and the broader implications for corporate governance and economic stability. Through real-world examples, the module highlights the consequences of neglecting value-creation principles.
What's included
1 video6 readings1 assignment
1 videoβ’Total 1 minute
- Overviewβ’1 minute
6 readingsβ’Total 28 minutes
- Introductionβ’4 minutes
- What Does It Mean to Create Shareholder Value?β’4 minutes
- Short-Termism Runs Deepβ’6 minutes
- Shareholder Capitalism Cannot Solve Every Challengeβ’4 minutes
- Can Stakeholder Interests Be Reconciled?β’5 minutes
- Consequences of Forgetting Value-Creation Principlesβ’5 minutes
1 assignmentβ’Total 16 minutes
- Value Creation and Strategic Thinkingβ’16 minutes
This module explores how companies create value by balancing growth and return on invested capital, using real-world business scenarios. Learners will follow the journey of Lily's Emporium, examining strategic decisions such as expansion, going public, and diversifying formats. By the end, you'll understand key financial concepts that drive business success.
What's included
1 video4 readings1 assignment
1 videoβ’Total 1 minute
- Overviewβ’1 minute
4 readingsβ’Total 17 minutes
- Introductionβ’4 minutes
- A New Conceptβ’4 minutes
- Going Publicβ’5 minutes
- Expansion into Related Formatsβ’4 minutes
1 assignmentβ’Total 16 minutes
- Financial Analysis and Value Creationβ’16 minutes
This module explores how companies generate value by analyzing the interplay between cash flow, revenue growth, and return on invested capital (ROIC). Learners will examine key financial concepts such as economic profit, the value driver formula, and the strategic implications for managers. The module also covers the historical foundations and mathematical principles underlying value creation.
What's included
1 video8 readings1 assignment
1 videoβ’Total 1 minute
- Overviewβ’1 minute
8 readingsβ’Total 49 minutes
- Introductionβ’4 minutes
- The Relationship of Growth, ROIC, and Cash Flowβ’7 minutes
- Balancing ROIC and Growth to Create Valueβ’6 minutes
- Implications for Managersβ’7 minutes
- Economic Profit Combines ROIC and Sizeβ’5 minutes
- Conserving Value: A Brief Historyβ’13 minutes
- The Math of Value Creationβ’5 minutes
- Summaryβ’2 minutes
1 assignmentβ’Total 16 minutes
- Fundamental Principles of Value Creationβ’16 minutes
This module explores the relationship between risk and the cost of capital in corporate finance, addressing common misconceptions and strategic pitfalls. Learners will examine how companies assess and manage different types of risk, make informed decisions about cash flow uncertainty, and determine when to hedge or embrace specific risks. Practical examples from various industries illustrate how these concepts impact real-world financial decisions.
What's included
1 video5 readings1 assignment
1 videoβ’Total 1 minute
- Overviewβ’1 minute
5 readingsβ’Total 28 minutes
- Introductionβ’6 minutes
- Companies Have Little Control over Their Cost of Capitalβ’4 minutes
- Create Better Forecasts, Not Ad Hoc Risk Premiumsβ’8 minutes
- Decide How Much Cash Flow Risk to Take Onβ’6 minutes
- Decide Which Types of Risk to Hedgeβ’4 minutes
1 assignmentβ’Total 16 minutes
- Financial Risk and Capital Cost Analysisβ’16 minutes
This module explores how total shareholder returns (TSR) are used to evaluate company performance, highlighting the influence of investor expectations and real-world examples from the food industry. Learners will gain insights into the challenges managers face when using TSR as a performance metric and understand the implications of the 'expectations treadmill.'
What's included
1 video4 readings1 assignment
1 videoβ’Total 1 minute
- Overviewβ’1 minute
4 readingsβ’Total 27 minutes
- Introductionβ’8 minutes
- The Treadmill's Real-World Effectsβ’11 minutes
- Understanding Expectationsβ’4 minutes
- Implications for Managersβ’4 minutes
1 assignmentβ’Total 16 minutes
- Stock Market Performance and Valuation Insightsβ’16 minutes
This module explores how environmental, social, and governance (ESG) factors and digital initiatives contribute to business value creation. Learners will examine the challenges of valuing these emerging priorities and discover strategies for leveraging them to drive revenue growth, optimize investments, and enhance organizational performance.
What's included
1 video5 readings1 assignment
1 videoβ’Total 1 minute
- Overviewβ’1 minute
5 readingsβ’Total 30 minutes
- Introductionβ’6 minutes
- Revenue Growthβ’6 minutes
- Investment and Asset Optimizationβ’5 minutes
- Paths to Improved Performanceβ’11 minutes
- Closing Thoughtsβ’2 minutes
1 assignmentβ’Total 16 minutes
- ESG and Digital Initiative Valuation Insightsβ’16 minutes
This module explores the relationship between stock prices and economic fundamentals, debunking common myths about market behavior, earnings management, diversification, and value distribution. Learners will examine empirical evidence to understand what truly drives company value and how market mechanisms operate beyond conventional wisdom.
What's included
1 video9 readings1 assignment
1 videoβ’Total 1 minute
- Overviewβ’1 minute
9 readingsβ’Total 47 minutes
- Introductionβ’6 minutes
- Markets and Fundamentals: The Evidenceβ’5 minutes
- Higher Returns, Higher Valueβ’6 minutes
- Myths about Earningsβ’5 minutes
- Write-Downsβ’4 minutes
- Myths about Earnings Managementβ’5 minutes
- Myths about Diversificationβ’4 minutes
- Myths about Market Mechanicsβ’6 minutes
- Myths about Value Distributionβ’6 minutes
1 assignmentβ’Total 16 minutes
- Stock Market Fundamentals and Corporate Financeβ’16 minutes
This module explores the key drivers of return on invested capital (ROIC), including how competitive advantage, cost and capital efficiency, and network economies contribute to value creation. Learners will examine industry trends, the stability of ROIC across sectors, and the importance of product renewal in sustaining high returns. By the end, you'll understand how strategic decisions impact a company's ability to generate superior returns.
What's included
1 video9 readings1 assignment
1 videoβ’Total 1 minute
- Overviewβ’1 minute
9 readingsβ’Total 49 minutes
- Introductionβ’4 minutes
- What Drives ROIC?β’5 minutes
- Competitive Advantageβ’8 minutes
- Cost and Capital Efficiency Advantagesβ’8 minutes
- Network Economiesβ’5 minutes
- Potential for Product Renewalβ’4 minutes
- ROIC Trends and Driversβ’6 minutes
- Stability of ROICβ’6 minutes
- Summaryβ’3 minutes
1 assignmentβ’Total 16 minutes
- ROIC and Competitive Dynamicsβ’16 minutes
This module explores the drivers and strategies behind corporate growth, examining how different approaches impact value creation. Learners will analyze empirical research on growth patterns and learn to assess the sustainability of growth projections for strategic decision-making.
What's included
1 video5 readings1 assignment
1 videoβ’Total 1 minute
- Overviewβ’1 minute
5 readingsβ’Total 31 minutes
- Introductionβ’5 minutes
- Growth and Value Creationβ’9 minutes
- Choosing a Growth Strategyβ’7 minutes
- Empirical Analysis of Corporate Growthβ’5 minutes
- Sustaining Growthβ’5 minutes
1 assignmentβ’Total 16 minutes
- Strategic Growth and Value Creationβ’16 minutes
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