The book is relevant to anyone that wants to value a company and its shares. This may, for instance, be to form an investment decision or to provide investment advice. It was written to help others avoid the frustration the author, Charles Sunnucks, faced when trying to get easily understandable answers on this topic. The book covers both public and private market equity valuation, plus fleshes out how to identify potential targets and avoid behavioural biases. Understanding what drives a company’s value is a fascinating journey and will likely entirely re-shape how you look at a company.

The Company Valuation Playbook does not focus on fast trading or new-fangled theories. Rather, it introduces you to the simple industry-standard tools used by professionals globally to value companies and their shares. These tools are relevant to all companies, and they range in complexity from those requiring only a pen, paper and calculator right through to the development of a comprehensive Excel discounted cash flow output. While some concepts may appear complicated at first, you only need some basic maths knowledge and a bit of common sense to work through them. As Warren Buffett eloquently put it, “Investing success doesn’t correlate with IQ after you’re above a score of 25. Once you have ordinary intelligence, then what you need is the temperament to control urges that get others into trouble.”

No prior experience required. The book makes no assumptions about your financial literacy and takes a step-by-step explanation approach to each topic. This includes detailing key accounting standards, and how to interpret financial statements.

The author of The Company Valuation Playbook, Charles Sunnucks, took and passed all of the CFA exams, so the content is certainly influenced by the CFA curriculum. The book however focuses on equity valuation, while the CFA exams also cover debt and derivatives in detail. A further difference is that the book is far more focused on being a practical guide, while the exams are largely ‘taught-to-test’. For those considering or taking the CFA, the book will nonetheless be highly helpful, breaking down complex topics with examples and diagrams.

Absolutely, and indeed a number of courses globally are already using the book within the curriculum. The book is also used by some financial service firms as a training self-training guide for new recruits.

Yes, and indeed while there are many who treat this as a separate discipline, the author is of the belief that ESG risks should be fully incorporated into any thorough fundamental assessment of a company’s worth. Increasingly the externalities – the costs that companies had historically imposed on their physical and social environment – are now increasingly being internalised in response to changes in policy and consumer expectations. Out of sight, is therefore no longer out of mind.