Definitions

Corroborating Analytics
A series of calculations to verify an investment’s financial statement portrayal is representative of the investment’s valuation and assumptions.

DCF Discounted Cash Flow (modified)
The modified discounted cash flow valuation method takes traditional discounted cash flow and adjusts it for differences between WACC and equity return; the valuation modification enable DCF's adherence to the treble equity return standard. See the Research discussion at peerinside.com

Earnings to Deployed Equity (EDE)
A comparative valuation metric for comparing the wealth formation potential of investment opportunities when capital cost is properly dedicated to risk neutralization alone. See the Research discussion at peerinside.com

EBITDA
An income statement exercise using Earnings Before Interest Taxes Depreciation and Amortization—the formulaic bottom-up approach to calculating pre-asset operating performance.

EBITDA Multiple
An EBITDA multiple (Enterprise Value/EBITDA) is a financial metric that compares a company's total value (debt plus equity, minus cash) to its annual earnings before interest, taxes, depreciation, and amortization. It acts as a valuation shortcut commonly used in M&A to compare companies within the same industry.

Equity Statement
Accounting's fourth of four primary financial statements. The dedicated validating purpose of the statement is to indicate debit entries equal credit entries.

Primary Financial Statements
Accounting's four core primary statements of balance sheet, income, cash flow, and equity.

Iterative Polynomial
An iterative polynomial is a mathematical technique that repeatedly applies a polynomial function, using the output of one step as the input for the next, to approximate roots of the equation x_n+1 = P(x_n) that converges to a solution; the Line [8T] Try is x_n+1 and Line [8U] Use is P(x_n).

Operating Performance (pre asset)
Operating performance is operating revenues, less operating expenses. Operating performance’s operating expenses exclude interest expense, income taxes, depreciation and amortization. The excluded expenses are distinguished as post asset expenses; thus, operating performance is generated on an operating based pre-asset basis. The top-down operating performance and the bottom-up EBITDA formula represent the same pre-asset amount. 

Operating Performance (proxy)
An Operating Performance proxy represents a non-varying periodic operating performance equivalent; an Operating Performance proxy is similar to that of a home or auto periodic payment, containing both a return 'on' and return 'of' component.

ROE, time value accrual
The accrual equity return’s time value calculation divides an investment’s net income present value by its outstanding equity present value. The accrual time value equity return is one of the three equity returns in the Treble Equity Return Standard.

Treble Equity Return Standard
The sought equity return risk profile of WACC matches the investment’s equity cash IRR and accrual equity ROE returns. The Treble Equity Return Standard is what enables DCF and EBITDA valuations to match.

WACC
Weighted Average Capital Cost—the average cost of capital inclusive of pre-tax equity return and debt cost.