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9 results for “valuation”

Formulae (9)

FV = PV(1 + r)^n

Future worth of a present sum.

PV = \frac{FV}{(1 + r)^n}

Present worth of a future sum.

NPV = \sum_{t=0}^{n}\frac{C_t}{(1+r)^t}

Present value of a stream of cash flows.

PV = \frac{C}{r}

Present value of an infinite constant cash flow.

PE = \frac{\text{Price}}{\text{EPS}}

Share price relative to earnings per share.

EPS = \frac{\text{Net Income}}{\text{Shares}}

Company profit allocated to each share.

EBITDA = NI + Interest + Taxes + Depreciation + Amortization

Earnings before interest, taxes, depreciation and amortization — a proxy for core operating cash generation.

BVPS = \dfrac{Equity - Preferred}{Shares\ Outstanding}

The net asset value backing each common share.

S = \dfrac{P_{domestic}}{P_{foreign}}

The exchange rate that would equalize the price of an identical basket of goods across countries.