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DISCOUNTED CASH FLOW (DCF)#1
A valuation method estimating a company's value based on its expected future cash flows, discounted back to their present value.
COMPARABLE COMPANY ANALYSIS (CCA)#2
A valuation technique that compares a company to similar firms to determine its market value using financial metrics.
PRECEDENT TRANSACTIONS#3
Analysis of past transactions involving similar companies to establish a benchmark for valuation.
WEIGHTED AVERAGE COST OF CAPITAL (WACC)#4
The average rate of return a company is expected to pay its security holders, used as a discount rate in DCF.
TERMINAL VALUE#5
An estimate of a company’s value at the end of a forecast period, capturing the value of future cash flows beyond that date.
SENSITIVITY ANALYSIS#6
A technique used to predict the outcome of a decision given a certain range of variables, assessing the impact of changing inputs.
FINANCIAL MODELING#7
The process of creating a numerical representation of a company's financial performance, often using Excel.
VALUATION MULTIPLES#8
Ratios used to compare a company's value to a financial metric, such as earnings or revenue, to assess its valuation.
ANALYST REPORT#9
A document prepared by analysts detailing a company's financial performance and providing investment recommendations.
MARKET CAPITALIZATION#10
The total market value of a company's outstanding shares, used as a measure of company size.
EARNINGS BEFORE INTEREST AND TAXES (EBIT)#11
A measure of a firm's profit that includes all incomes and expenses except interest and income tax expenses.
CASH FLOW PROJECTION#12
Estimates of future cash inflows and outflows, crucial for DCF analysis.
FINANCIAL STATEMENTS#13
Formal records of the financial activities of a business, including the balance sheet, income statement, and cash flow statement.
PRESENT VALUE#14
The current worth of a future sum of money or stream of cash flows given a specified rate of return.
DISCOUNT RATE#15
The interest rate used to discount future cash flows to their present value, reflecting the risk of the investment.
INVESTMENT COMMITTEE#16
A group of individuals responsible for making decisions regarding investment strategies and allocations.
DATA GATHERING#17
The process of collecting relevant financial data for analysis, essential for accurate valuation.
SLIDE DECK#18
A collection of slides used in presentations to convey information visually and support verbal communication.
VISUAL AIDS#19
Tools such as charts and graphs that enhance presentations by illustrating key points and data.
COMPANY VALUATION#20
The process of determining the economic value of a business or company.
RISK ASSESSMENT#21
The systematic process of evaluating potential risks that could be involved in a projected investment.
PRESENTATION DELIVERY#22
The act of presenting findings to an audience, focusing on clarity, engagement, and effectiveness.
FEEDBACK INCORPORATION#23
The process of integrating constructive criticism to improve future presentations or analyses.
MARKET COMPARABLES#24
Similar companies used in comparative analysis to derive valuation metrics.
FINANCIAL RATIOS#25
Quantitative relationships between financial statement items, used for analysis and comparison.