Fundamental Analysis & Valuation
8 terms
Capital Allocation
Management's decisions about where to deploy the cash a business generates: reinvestment, acquisitions, debt repayment, dividends or…
Fundamental Analysis & ValuationCapital Asset Pricing Model
A model that estimates the return required on an asset as the risk-free rate plus a premium proportional to its market risk.
Fundamental Analysis & ValuationCash Conversion Cycle
The number of days between paying for inputs and collecting cash from customers.
Fundamental Analysis & ValuationComparable Company Analysis
The selection and adjustment of a peer group whose multiples are used to value a target company.
Fundamental Analysis & ValuationCompound Annual Growth Rate
The constant annual rate at which a value would have had to grow to move from its starting figure to its ending figure.
Fundamental Analysis & ValuationConsensus Estimate
The average of analysts' forecasts for a company's future earnings, revenue or other metric.
Fundamental Analysis & ValuationCost of Equity
The return shareholders require for bearing the risk of owning a company's shares.
Fundamental Analysis & ValuationCurrent Ratio
Current assets divided by current liabilities, measuring whether short-term obligations are covered by short-term assets.