Earn-Outcorporate
A contingent-payment provision in an acquisition agreement that provides for additional compensation to the seller if the target company achieves predefined financial targets after closing.
Terms starting with “E”
49 definitions found.
Earnings Before Interest And Taxes (EBIT)fundamental
Earnings Before Interest And Taxes (EBIT) is a measure of a company’s operating profitability, calculated as revenue minus operating expenses, excluding interest and income taxes.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)fundamental
EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization. It is a non-GAAP metric that estimates a company's operating profitability by excluding financing costs, income taxes, and non-cash charge…
Earnings Growthstyles
Earnings growth is the rate at which a company's earnings increase over time, commonly measured by changes in earnings per share (EPS) or net income. Analysts often compare year-over-year or multi-year growth rates, such…
Earnings Per Sharefundamental
Earnings Per Share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. It is calculated by dividing net income by the weighted average number of common shares outstanding durin…
Earnings Per Share (EPS)fundamental
Earnings Per Share (EPS) is a measure of a company's profitability on a per-share basis, calculated as net income attributable to common shareholders divided by the weighted-average number of common shares outstanding; i…
Earnings Qualitystyles
Earnings quality is the degree to which a company's reported earnings reflect its true ongoing economic performance, emphasizing persistence, predictability, and sustainability of earnings over time.
Earnings Yieldstyles
Earnings yield is the earnings per share (EPS) divided by the current price per share, effectively the inverse of the price-to-earnings (P/E) ratio.
Earnoutcorporate
An earnout is a form of contingent consideration in a merger or acquisition where part of the purchase price is paid later and depends on the acquired business meeting predefined performance targets. The amount and timin…
EBITDAfundamental
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a non-GAAP metric that estimates a company’s operating performance by excluding financing costs, income taxes, and non-cash depreciation and amo…
Economic Cyclemacro
An economic cycle is the recurring pattern of expansion and contraction in a country’s overall economic activity, typically captured by measures such as GDP growth, employment, and inflation, with phases of expansion, pe…
Economic Value Added (EVA)fundamental
Economic Value Added (EVA) is a measure of a company's economic profit, calculated as after-tax operating profit minus the cost of capital tied up in the business.
Effective Durationfixed_income
A measure of a fixed-income security's price sensitivity to parallel shifts in interest rates that accounts for potential changes in cash flows due to embedded options.
Effective Tax Ratefundamental
The effective tax rate (ETR) is the average rate at which pretax income is taxed. In corporate reporting, it is typically calculated as income tax expense divided by pretax income.
Efficient Frontierrisk_portfolio
The Efficient Frontier is the set of portfolios that maximize expected return for a given level of risk (or minimize risk for a given return) in mean-variance analysis.
Electronic Communication Networkmicrostructure
An Electronic Communication Network (ECN) is an electronic trading venue that matches orders and publishes quotes, providing direct access to multiple trading venues.
Electronic Communication Network (ECN)microstructure
An Electronic Communication Network (ECN) is an automated trading venue that matches orders to acquire or liquidate positions directly, or routes them to other participants, typically providing visible order books and fa…
Employment Situationmacro
A monthly U.S. labor-market snapshot released by the Bureau of Labor Statistics that summarizes payroll employment, unemployment rate, and other labor-market indicators.
Employment-Population Ratiomacro
The employment-population ratio is the share of the civilian non-institutional population aged 16 and over that is employed.
Endowment Effectbehavioral
The Endowment Effect is a behavioral bias in which ownership of an object leads people to assign it a higher value than a comparable object not in their possession.
Enterprise Value (EV)fundamental
Enterprise Value (EV) is a measure of a company’s total value as if it were to be acquired, calculated as market capitalization plus debt, minority interest, and preferred equity, minus cash and cash equivalents.
Enterprise Value To EBITDAfundamental
Enterprise Value To EBITDA (EV/EBITDA) is the ratio of a company’s enterprise value to its EBITDA, used as a rough multiple of operating earnings to compare value across firms.
Enterprise Value to EBITDA (EV/EBITDA)fundamental
A valuation multiple calculated as enterprise value divided by EBITDA, used to compare a company’s value relative to its operating earnings.
Enterprise Value To Salesstyles
The Enterprise Value to Sales (EV/Sales) is a valuation multiple that compares a company’s enterprise value to its revenue.
Enterprise Value to Sales (EV/Sales)fundamental
EV/Sales is a valuation multiple that compares a company’s enterprise value to its annual sales (revenue). It expresses how much investors value each dollar of sales.
Equity Financingcorporate
Equity financing is the process by which a corporation raises capital by issuing ownership interests in the company, typically in the form of stock, to investors. This method provides funds without incurring debt and can…
Equity Real Estate Investment Trustasset_classes
An Equity Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate; equity REITs primarily own and manage properties to generate rental income.
Equity REITasset_classes
Equity REIT (Real Estate Investment Trust) is a company that owns or operates income-producing real estate and derives most of its revenue from rents and leases.
Equity Valuecorporate
Equity value is the market value attributed to a company’s shareholders’ equity, representing the total value of all outstanding equity securities (common and any preferred shares) as determined by current prices. In pra…
Equivalent Yieldfixed_income
Equivalent yield is the standardized annualized return on a fixed-income security, converting its cash flows and compounding into a common basis for comparison with other bonds.
Ethereumasset_classes
Ethereum is a decentralized blockchain platform that supports programmable smart contracts and decentralized applications. Its native cryptocurrency is Ether (ETH), used to pay for computation and transaction fees on the…
European Optionderivatives
A European option is a derivative that can be exercised only on its expiration date; it comes in two forms—call and put. A call gives the right to acquire the underlying asset for the strike price on expiration, while a …
EV/EBITDAfundamental
The EV/EBITDA ratio compares a company’s enterprise value to its EBITDA (earnings before interest, taxes, depreciation, and amortization) to gauge relative valuation.
Evening Startechnical
Evening Star is a three-candle candlestick pattern that may signal a reversal from an uptrend to a downtrend.
Exchangemicrostructure
An exchange is a regulated marketplace where participants submit orders to trade standardized financial instruments, and a central matching engine pairs compatible orders for execution.
Exchange Ratemacro
An exchange rate is the value of one currency expressed in terms of another currency. It shows how much of the second currency is required to obtain one unit of the first.
Exchange Traded Fundasset_classes
An Exchange Traded Fund (ETF) is a fund that trades on a stock exchange and seeks to track the performance of a specific index, commodity, or basket of assets. They typically aim to deliver exposure with relatively low o…
Exchange-Traded Fund (ETF)asset_classes
An Exchange-Traded Fund (ETF) is a security that tracks an index, sector, commodity, or other asset basket and trades on a stock exchange like a stock. It represents a share of a diversified portfolio and is priced and t…
Execution Qualitymicrostructure
Execution quality is the degree to which an order is filled at or near the desired price, with minimal slippage, fast completion, and fills that reflect available liquidity.
Execution Venuemicrostructure
The execution venue is the marketplace where an order is matched against counterorders and a trade is executed. It includes stock exchanges, alternative trading systems (ATSs), and dark pools.
Exercisederivatives
Exercising an option means the holder invokes the contract to obtain the underlying asset at the strike price (for a call) or to transfer the underlying asset in exchange for the strike price (for a put).
Exit Multiplecorporate
An exit multiple is the valuation multiple used to estimate the value received when an investment is sold or liquidated, commonly expressed as a multiple of a financial metric such as enterprise value to EBITDA (EV/EBITD…
Expected Inflationmacro
Expected inflation is the rate of future price level changes that market participants, households, and policymakers anticipate for a specific horizon. It is inferred from surveys and market-based measures rather than rea…
Expected Returnrisk_portfolio
Expected Return is the probability-weighted average of the possible returns for an asset or portfolio over a specified period.
Expected Shortfallrisk_portfolio
Expected Shortfall (ES) is a risk measure that estimates the average loss that would occur in the tail of the loss distribution beyond a specified Value at Risk (VaR) threshold at a chosen confidence level.
Expense Ratioasset_classes
The expense ratio is the annual fee charged by a fund or ETF to cover operating costs, expressed as a percentage of assets, and deducted from the fund's assets and reduces the investor's net return.
Expiration Datederivatives
The expiration date is the final date on which a derivative contract remains active and can be exercised or settled; after this date the contract expires and is no longer valid.
Exponential Moving Averagetechnical
The Exponential Moving Average (EMA) is a moving average that gives greater weight to more recent prices, making it more responsive to new data than a simple moving average. It is calculated using a smoothing factor and …
Exponential Moving Average (EMA)technical
Exponential Moving Average (EMA) is a moving average that assigns more weight to recent prices, making it more responsive to new data than a simple moving average.