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Abnormal Earnings Approach
A valuation method that estimates a company's value based on the prediction of future abnormal earnings, defined as earnings in excess of a normal return on investment.
Free Cash Flow Approach
A valuation method focusing on the cash flows that a company can generate after accounting for capital expenditures required to maintain or expand the asset base.
Return On Assets
A financial ratio indicating the profitability of a company relative to its total assets, measuring how efficiently a company uses its assets to generate profit.
Cost Of Equity Capital
The return that investors expect for investing in a company's equity, taking into account the perceived risk of the investment.
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