Wondering what all these investment terms and other cryptic financial terminology actually means? You’re not alone. There’s a ton of acronyms and jargon in the financial world. Find answers to your questions here in our financial terms glossary. If you have any questions that haven’t been answered here, contact us and we’ll add a definition.
CONTENTS
EBITDA
EV (Enterprise Value)
Present Value ..
EBITDA
Earnings before interest on debt, taxes and depreciation. Similar to the cashflow of the business.
EV (Enterprise Value)
The value of the entire company taking into account any debt outstanding and cash in the bank. Calculated as the total value of stock outstanding plus the value of debt minus cash in the bank.
Present Value
To the average person a dollar in your pocket today is worth more to you than a dollar in your pocket one year from now. Therefore the future, higher value of a company needs to be adjusted back to its present value to see what it is worth to us TODAY.