The static trade-off theory indicates that there is a trade-off between the tax shield from interest on debt and the costs of financial distress, leading to an optimal amount of debt in a company’s capital s […]

Market value added = Market value of capital − Total capital

FCFE = NI – Net capital expenditure – WCInv + New debt financing

The major concepts are as follows:

EPS plus per-share depreciation, amort […]

Market value added = Market value of company – Accounting book value of total capital
Market value of firm = Market value of debt + Market value of e […]

When the company being analyzed has significant noncash charges other than depreciation expense, this sales-based methodology will result in a less accurate estimate of FCFE than one obtained by forecasting all […]

EEM では、運転資金、固定資産、無形資産を異なる割引率で評価することができる。EEMが民間企業全体の価格決定に用いられることはまれである

Generally, the EEM is used to value intangible assets and very small businesses when other such market approach methods are not feasible, and […]

Normalized EPS is the level of earnings per share that the company could currently achieve under mid-cyclical […]

ノーマライズド・ファイナンシャル・ステートメント（Normalized Financial Statements）とは？企業の決算の実態を把握するために、企業の非経常的な費用や収益を調整する […]

The return on capital employed (ROCE) is a pre-tax return measure that can be useful in the peer comparison of companies in countries with different tax structures. […]