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Book Value |
Book Value is the value of an asset as carried on a company’s balance sheet. |
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Discount Rate |
Discount rate refers to the interest rate used in discounted cash flow analysis. |
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Discounted Cash Flow (DCF) |
Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future free cash flow projections and discounts them to arrive at a present value estimate, which is used to evaluate the potential for investment. |
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Economic Moat |
An economic moat refers to a business' ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms. |
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Enterprise Value (EV) |
Enterprise value (EV) is a company’s market capitalization plus debt, minority interest and preferred shares, and less total cash and cash equivalents.
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Enterprise Value to Sales (EV/sales) |
Enterprise value to sales (EV/sales), is a valuation measure that compares a company’s enterprise value to the company’s sales.
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EV/EBITDA |
EV/EBITDA is a ratio comparing a company’s enterprise value and its earnings before interest, taxes, depreciation and amortization.
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Free Cash Flow (FCF) |
Free Cash Flow (FCF) is a measure of a company’s ability to generate the cash flow necessary to maintain operations. Generally, it is calculated as operating cash flow minus capital expenditures.
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Free Cash Flow Yield (FCF Yield) |
Free Cash Flow Yield (FCF Yield) equals a company’s free cash flow per share divided by the current market price per share.
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M&A |
M&A stands for mergers and acquisitions.
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Margin of Safety |
“Margin of Safety” is a reference to the difference between a stock’s market price and Southeastern’s calculated appraisal value. It is not a guarantee of investment performance or returns.
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Operating Income (OI) |
Operating income (OI) is the income from a company’s primary business operations, excluding extraordinary income and expenses. It is also referred to as earnings before interest and taxes (EBIT).
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Private Market Value (PMV) |
Private market value (PMV) is the break-up market value of all divisions of a company if divisions were each independent and established their own market stock prices.
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Return on Equity (ROE) |
Return on equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity.
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Spin Off |
A spin off is a type of corporate action where a company "splits off" sections as a separate business.
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Working Capital |
Working capital is the amount of current assets minus the amount of current liabilities as of a specific date.
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