DCF valuation: related pages
NPV (net present value) The current value of a stream of future cash flows, negative or positive.
Sum of parts valuation The valuation of a company by separately valuing different parts of it so different valuation methods or ratios can be applied to disparate businesses.
Terminal value The value used for the cash flow in the last year of an NPV; the value of the investment at the end of the last period of the NPV.
Trading comps (comparables) Valuation ratios when used to value a company by comparison with listed peers.
Transaction comps/deal comps The use of comparisons of the valuations at which deals, such as takeovers, have occurred, in valuing a company.
WACC The weighted average of the rates of return required by all of a company’s sources of capital.
CAPM A method of valuing securities or an investment using a discounted cash flow (DCF) using a risk adjusted discount rate.
Arbitrage pricing theory Arbitrage pricing theory; a valuation method which is theoretically sound but which is difficult to apply in practice.
Copyright Graeme Pietersz © 2005-2019
