Equity Valuation: Models from Leading Investment Banks

Abbreviations

APT	Arbitrage Pricing Theory
APV	Adjusted present value
ARPU	Average revenue per user
BOY	Beginning of year
BV	Book value
CAGR	Compounded annual growth rate
CAP	Competitive advantage period
CAPEX	Capital expenditures
CAPM	Capital Asset Pricing Model
CDP	Competitive disadvantage period
CEO	Chief executive officer
CEQ	Certainty equivalent
CF	Cash flow
CFBH	Cash flow to bond holders
CFFF	Cash flow from financing activities
CFFI	Cash flow from investing activities
CFFO	Cash flow from operating activities
CFNF	Cash flow from net financing
CFO	Chief financial officer
CFROI	Cash flow return on investment
COGS	Cost of goods sold
DA	Depreciating assets
DA	Depreciation and amortization
DCF	Discounted cash flow
ΔD	Net debt issuance
DDM	Discounted dividend model
DGM	Dividend growth model
DPS	Dividend per share
EBIT	Earnings before interest and taxes
EBITDA	Earnings before interest, taxes, depreciation and amortization
EBV	Economic book value
EGQ	Economic growth quotient
EP	Economic profit
EPA	Economic profit analysis
EPIC	Economic profitability of invested capital
EPS	Earnings per share
ERP	Equity risk premium
ESO	Employee stock options
EV	Economic value
EVA	Economic value added
FCFE	Free cash flow to equity
FCFF	Free cash flow to the firm
FCFO	Free cash flow from operating activities
FV	Future value
FYE	Fiscal year end
GAAP	Generally accepted accounting principles
GCF	Gross cash flow ...