Glossary
Book value
The shareholders’ value that is recorded on the balance sheet.
This value is also the book value of the shareholders’ part of the assets. The
book value rarely agrees with the market valuation of the company equity.
CAGR Compound annual growth rate. The year-over-year return or growth
over a specific number of years. Used to estimate what the return or
growth would have been if it was the same every year during the period.
Continuing value or terminal value The discounted value of all free cash flows
for the period after the explicit value period (and the hypergrowth period
if this is used) to infinity.
COGS Cost of goods sold. This represents the cost of buying raw material
and producing finished goods. It includes ...