Fundamental Analysis & Valuation
6 terms
Fundamental Analysis & Valuation
Financial Leverage
The use of borrowed money to increase the return on shareholders' capital, and the risk that comes with it.
Fundamental Analysis & ValuationForward Price-to-Earnings
The price-to-earnings ratio computed using forecast earnings for a future period rather than reported ones.
Fundamental Analysis & ValuationFree Cash Flow to Equity
The cash available to shareholders after operating costs, capital expenditure, debt interest and net debt movements.
Fundamental Analysis & ValuationFree Cash Flow to Firm
The cash generated by operations available to all capital providers, before any payments to lenders or shareholders.
Fundamental Analysis & ValuationFree Cash Flow Yield
Free cash flow expressed as a percentage of market capitalisation or enterprise value.
Fundamental Analysis & ValuationFundamental Analysis
The study of a company's financial statements, industry and economics in order to estimate what its shares are worth.