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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.