by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Deleverage?Deleveraging is the process of reducing the debt of financial liabilities of a form, household or individual. This is the opposite of leveraging. The process of decreasing the financial leverage or debt of a firm by paying off all outstanding...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Extrinsic Value?The extrinsic value of an item refers to the value of the item outside of its intrinsic value, this can be derived from the amount of money assigned to the asset beyond the actual value. The extrinsic value of an item can be calculated as the...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a PEG Payback Period?The PEG (Price to Earnings Growth) payback period refers to a key ratio that is utilized to ascertain how long it will take for an investor to double his or her money with a stock investment. The price-to-earnings-growth payback period is...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Sum-of-the-Parts Valuation?The sum-of-the-parts valuation (SOTP) refers to a method of valuing a firm by evaluating or assessing each of its divisions separately before their values are aggregated. This means that all the divisions or segments of the...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Reinvestment Rate?Reinvestment rate refers to the rate at which cash flows from an investment can be reinvested into another. It is also the amount of interest that an investor can earn when the cash flow from one investment is taken out and put into...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Business Credit Score?A business credit score refers to a number that measures the business creditworthiness. It determines whether a business qualifies for a loan. The calculation of a business credit score is based on a number of factors like the business...
