Tim Koller

Tim Koller is a partner at McKinsey & Company and co-author of "Valuation: Measuring and Managing the Value of Companies" (now in its 7th edition), which has sold over half a million copies and is the standard reference for corporate finance practitioners on discounted cash flow valuation. The book covers the mechanics and theory of DCF valuation, market value of invested capital, weighted average cost of capital, and value creation frameworks. It is used in investment banking, private equity, and corporate finance globally and has trained generations of financial analysts. The book's emphasis on return on invested capital (ROIC) relative to the cost of capital as the fundamental determinant of value creation has shaped how McKinsey and many of its corporate clients frame strategic investment decisions. Its treatment of valuation in special situations — acquisitions, restructurings, divestitures, and financial distress — makes it a comprehensive reference that practitioners return to throughout their careers rather than using it only during their initial training.