Valuing and Investing in Equities

Valuing and Investing in Equities: CROCI: Cash Return on Capital Investment develops a common-sense framework for value investors. By distinguishing investors from speculators, it acknowledges the variety of styles and goals in the financial markets. After explaining the intuition behind due diligence, portfolio construction, and stock picking, it shows the reader how to perform these steps and how to evaluate their results. Francesco Curto illuminates the costs and opportunities afforded by valuation strategies, inflation, and bubbles, emphasizing their effects on each other within the CROCI framework. Balancing analytics with an engaging clarity, the book neatly describes a comprehensive, time-tested approach to investing. Annual returns from this investment approach demand everyone’s attention.

"Presents the Cash Return on Capital Invested (CROCI) framework for valuing and investing in equities, explaining how it quantifies the economic success of a company and how such an assessment is crucial to intrinsic valuation. Discusses capital and returns."—Journal of Economic Literature

"Francesco Curto makes an incredibly compelling case for CROCI. Anyone interested in stock analysis, fundamental valuation or investing in equities should find a great deal to learn from this book." —Amit Seru, The Steven and Roberta Denning Professor of Finance, Stanford Graduate School of Business

"Valuing and Investing in Equities: CROCI is an essential read for anyone evaluating investment targets worldwide. Its easy-to-understand presentation guides investors in deciphering complex financial statements, normalizing between companies, and discerning an accurate picture of their financial health." —Randy Brown, CIO Sun Life and Head of Insurance Asset Management for SLC Management