Examlex
Select the correct description for each of the abbreviations.
-HD
P/E
Price-to-Earnings ratio, a valuation metric that compares a company's market share price to its per-share earnings, used to assess if a stock is over or under-valued.
Free Cash Flow
Cash generated by a company's operations minus capital expenditures, indicating the amount of cash a company can distribute to shareholders or reinvest.
Net Debt
The total debt of a company minus its cash and cash equivalents, indicating the actual debt burden on the company.
Cost of Equity
The return that a company requires to decide if an investment meets capital return requirements and is often used in financial modeling for valuing a company.
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