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EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization.
Read Full Definition & Formulas →Compound Interest
Interest calculated on initial principal plus accumulated interest.
Read Full Definition & Formulas →Price-to-Earnings (P/E)
Ratio for valuing a company measuring current share price relative to EPS.
Read Full Definition & Formulas →Discounted Cash Flow (DCF)
Valuation method estimating intrinsic value based on future cash flows.
Read Full Definition & Formulas →Yield Curve Inversion
Macro condition where short-term yields exceed long-term bond yields.
Read Full Definition & Formulas →Sharpe Ratio
Measure of risk-adjusted excess return per unit of volatility.
Read Full Definition & Formulas →Free Cash Flow (FCF)
Cash generated after subtracting expenditures for capital assets.
Read Full Definition & Formulas →Operating Income (EBIT)
Profit realized from an entity's ongoing core business operations.
Read Full Definition & Formulas →Capital Expenditures (CapEx)
Funds used by an enterprise to acquire, upgrade, and maintain physical assets.
Read Full Definition & Formulas →Enterprise Value (EV)
Comprehensive measure of a company's total economic valuation.
Read Full Definition & Formulas →Beta
Measure of an asset's systematic risk and volatility relative to the broader market.
Read Full Definition & Formulas →Quantitative Easing (QE)
Monetary policy where a central bank purchases government bonds to inject liquidity.
Read Full Definition & Formulas →Every Definition Verified by Certified Practitioners
Financial terminology is rife with nuances that make or break trading decisions and tax filings. Our review board of CFA charterholders, CFP practitioners, and CPA accountants continuously stress-tests our formulas and examples against changing IRS rules and market conventions.
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