Clay Finck is joined by Tim Koller to discuss all things valuation. Tim is the lead author of Valuation: Measuring and Managing the Value of Companies which is the #1 best-selling guide to business valuation. What you'll learn here: 00:00:00 - Intro 00:00:51 - How companies create shareholder value. 00:04:42 - The common misconceptions related to creating shareholder value. 00:13:38 - How managers should think about return on invested capital. 00:28:47 - Why it’s so common for managers to not take a long-term approach. 00:31:52 - How return on invested capital impacts a company’s valuation. 00:41:32 - How Tim thinks about the vast differences in returns we’ve seen in the US relative to Europe. Transcript & Guest Info: https://www.theinvestorspodcast.com/episodes/first-principles-of-valuation-w-tim-koller/ Join our highly vetted community of value investors: https://www.theinvestorspodcast.com/mastermind/ 🤝 Join Clay and a select group of passionate value investors for a retreat in Big Sky, Montana. Learn more here: https://www.theinvestorspodcast.com/summit 💎 Explore a new business weekly and decide if it deserves a spot in your portfolio. https://www.theinvestorspodcast.com/intrinsic-value-podcast/ ▶️ Related Episodes: - Unlocking the Secrets of Valuation in This Masterclass w/ Aswath Damodaran: https://youtu.be/KaD0qFJhceo - Valuation Lessons You Must Know | The Little Book Of Valuation By Aswath Damodaran Review: https://youtu.be/nkEJCtf5PLo - The Quiet Winners: Unveiling Hidden Value w/ Adam Wilk: https://youtu.be/5RnR101iG5Q 📖 Book Mentioned: - Valuation: Measuring and Managing the Value of Companies by Tim Koller: https://amzn.to/3HhLXnO Listen to our episodes here: https://open.spotify.com/show/28RHOkXkuHuotUrkCdvlOP Visit our website: https://www.theinvestorspodcast.com/we-study-billionaires/ Free PDF: Investing for Beginners: 4 Principles of Stock-Picking: https://www.theinvestorspodcast.com/subscribe-youtube/ ⚠️ Disclaimer: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting. #BusinessValuation #ShareholderValue #ROIC #TimKoller #CorporateStrategy