Stout Technical Flashcards
What is a future?
Derivative asset with standardized terms and traded on exchanges
What is a forward?
A derivative asset that has customizable terms and are traded over the counter
What is a DCF?
DCF = discount cash flow
What is the definition of DCF?
It is a valuation method that estimates the value of an investment using its expected future cash flows
What is EBITDA?
Earnings before interest, tax, depreciation, amortization
Definition of EBITA
Attempts to represent cash profit generated by the company’s operations
What are the types of valuation?
There are 3 approaches to valuing a business or asset: market approach, cost approach, income approach
What is CAPM
A mathematical model that estimates the expected return on an investment based on its riskiness relative to the rest of the market
What is a beta?
It reflects the volatility of a given security against the volatility of the stock market as a whole
What is a balance sheet
Disclosed what the entity owns (assets) and what it owes (liabilities) at a specific point in time
Income statement
Focuses on the revenue, expenses, gains, and losses of a company during a particular period
Cash flow statement
Shows how much cash entered and exited a company during an accounting period
Statement of retained earnings
An overview of changes in the amount of retained earnings during a given accounting period
What are retained earnings
An overview of changes in the amount of retained earnings during a given accounting period
