Resources
Key terms, clearly explained
A reference guide to the financial concepts behind every CapUCalc model — built for investors, advisors, and anyone new to multi-class capital structures.
Showing all 20 terms
| Term | Definition |
|---|---|
| BEV / Enterprise Value | A level value representing operations, calculated as invested capital less cash. |
| Book Value | An accounting-based indication of cost less depreciation, or assets less liabilities. |
| Capitalization Rate | A rate of return used to determine value from consistent cash flows. Equals discount rate minus perpetual growth rate. |
| Cash Flow | Net amount of cash in and out of an investment. Can be EBITDA less capex, NOI, or funds from operations depending on industry. |
| Comps / Guideline Companies | Companies chosen for similar risk, returns, and growth profiles, used to determine market multiples or discount rates. |
| Cost Approach | A valuation approach measuring value based on the cost to reconstruct or replace an asset with one of like utility. |
| Debt | Money borrowed to finance an investment, senior in preference to equity. Includes loans, credit lines, and redeemable preferred stock. |
| Discounted Cash Flow (DCF) | An income approach method discounting multiple years of cash flow plus a terminal value to arrive at present value. |
| Dividend Discount Model | A valuation model in which cash flow is divided by a capitalization rate (e.g., Gordon Growth Model). |
| Earnings | Net income available to equity holders after payments to debt, preferred stockholders, and minority interests. |
| EBITDA | Earnings before interest, taxes, depreciation and amortization. A common proxy for operating cash flow. |
| Equity | Value of assets less liabilities. Can include common stock, warrants, options, and certain preferred stock. |
| Income Approach | A valuation approach measuring value by discounting future economic benefits including cash flows and terminal value. |
| Invested Capital (IC) | Debt plus market value of preferred stock, minority interests, and common equity. |
| Market Approach | A valuation approach applying market multiples from comparable companies or transactions. |
| Market Multiples | Ratios of value to revenue, earnings, or cash flow derived from comparable public companies or transactions. |
| Market Value of Equity | Stock price times shares outstanding. Represents the P (price) in the P/E ratio. |
| Return | Profit on an investment. Can include cash, equity, or PIK (payment in kind). |
| Terminal / Exit Value | Anticipated value at the end of a DCF model’s projected period, calculated by market multiples or other models. |
| Value (Financial) | The present value of all future cash flows. |
No terms match your search. Try a different keyword.
Ready to put this into practice?
Have questions or want to learn more about CapUCalc? We would love to hear from you.
Contact Us