BVPS
The per-share value of a company's net assets — total equity minus preferred equity, divided by shares outstanding.
Capital Structure
The mix of debt and equity a company uses to finance its assets and operations.
Cost of Capital
The minimum return a company must earn on its investments to satisfy all capital providers — both debt holders and equity investors.
Cost of Debt
The effective interest rate a company pays on its borrowed funds, after adjusting for tax savings.
Cost of Equity
The return required by equity investors to compensate for the risk of owning a company's stock.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization — a proxy for operating cash profitability.
Enterprise Value
The total value of a business — equity plus debt minus cash.
EV/EBIT
Enterprise Value divided by operating profit (EBIT) — a capital-structure-neutral earnings multiple.
EV/EBITDA
Compares a company's total value to its earnings before interest, taxes, depreciation, and amortisation.
EV/Revenue
Enterprise Value divided by annual revenue — a capital-structure-neutral alternative to the P/S ratio.
FCF Yield
Free cash flow expressed as a percentage of market capitalisation.
Free Cash Flow
Cash remaining after a company pays for its operating expenses and capital expenditures — available for dividends, buybacks, or debt repayment.
Graham Number
Benjamin Graham's formula for the maximum price a defensive investor should pay for a stock, based on EPS and book value.
P/E Ratio
Measures how much investors pay per dollar of earnings.
PEG Ratio
Adjusts the P/E ratio by a company's expected earnings growth rate.
P/B Ratio
A valuation ratio comparing a company's market price per share to its book value per share.
P/CF Ratio
Compares a stock's price to its operating cash flow per share, reducing the impact of accounting adjustments.
P/FCF Ratio
Compares a company's market capitalization to its free cash flow — the cash left after capital expenditures.
P/S Ratio
Measures how much investors pay for each dollar of a company's annual revenue.
Risk-Free Rate
The theoretical return on an investment with zero risk, typically approximated by short-term government bond yields.
Terminal Value
The estimated value of a business beyond the explicit forecast period in a discounted cash flow model.
WACC
The average after-tax cost of all capital sources a company uses, weighted by each source's proportion of total capital.
WACC
The blended rate of return a company must earn to satisfy all its capital providers — both debt and equity.