Shows whether a deal increases or decreases earnings per share.

Growth coming from acquisitions.

The business being acquired.

The entity that gains control.

The date control of the acquired business is obtained.

The IFRS process for accounting for a business combination.

A market with frequent trading and reliable current prices.

EBITDA changed to reflect sustainable or comparable operations.

Value equals adjusted assets minus adjusted liabilities.

Return not explained by the chosen market-risk model.

An intangible asset whose cost is spread over a limited useful life.

Spreading an intangible asset's cost over its useful life.

Initial value adjusted over time using the effective interest method.

A professional estimate of what an asset is worth.

The value of having a trained workforce already in place.

Buying assets that do not together qualify as a business.

Values a business from the values of its assets and liabilities.

Business risk beta before debt financing.

A company the investor can significantly influence but does not control.

Something treated as true when performing the valuation.

Checking past model estimates against what actually happened.

A gain when acquired net assets exceed the total purchase price basis.

The specific definition of value used in the assignment.

How strongly an investment tends to move with the market.

The gap between buying and selling prices.

A possible reduction for a very large holding; generally not allowed against Level 1 prices under IFRS 13.

The accounting value recorded in the financial statements.

An organised set of resources and activities that can operate commercially.

A transaction in which one entity gains control of a business.

A group restructuring between entities controlled by the same party.

The operating organisation being valued.

How the entity manages financial assets to earn cash flows.

Estimating what a business or ownership interest is worth.

Aligning a model to known transaction evidence and updating it over time.

Risk-free return plus compensation for market risk.

Cash spent on long-term assets.

How a company is financed with debt and equity.

A multiplier equal to one divided by the capitalisation rate.

Stable earnings divided by a capitalisation rate.

The rate used to turn ongoing income into value.

The accounting value shown on the balance sheet.

Cash and very liquid short-term investments.

How long operating cash is tied up before being recovered.

Actual cash generated or used.

Cash from raising or repaying debt and equity.

Cash spent on or received from long-term investments and assets.

Cash generated by normal business operations.

Cash available compared with short-term liabilities.

A deal price stated before adding cash and subtracting debt.

The smallest asset group with largely independent cash inflows.

An extra return for risks unique to the company.

Uses prices paid in similar transactions.

Earning returns on both principal and prior returns.

A shortcut test indicating an acquired set is not a business when value is concentrated in one asset.

The fair value of what the buyer gives for the business.

A possible future asset depending on an uncertain event.

A future purchase-price payment linked to conditions or performance.

A possible or uncertain obligation not recorded as a normal liability.

Checks whether a financial asset has basic loan-like cash flows.

A charge for using supporting assets in an intangible valuation.

The ability to direct important decisions and affect returns.

Extra value for having decision-making control.

Extra purchase price for control is absorbed into asset values and goodwill.

A shared asset supporting several cash-generating units.

Value based on current replacement or reproduction cost, less loss in value.

The return investors require for providing funding.

The market return required by lenders.

The return shareholders require.

Direct additional costs of selling an asset.

Risk that the other party will not pay or perform.

Extra return for risks linked to a country.

Risk that the borrower will not pay.

Extra yield above a low-risk benchmark for credit and liquidity risk.

A reduction for the counterparty's default risk.

A financial asset already showing serious credit problems.

The smoothed yearly growth rate over a period.

Current assets compared with short-term liabilities.

The cost today to obtain an equally useful modern asset.

The expected rate at which customers leave.

The value of ongoing business from existing customers.

An initial difference between transaction price and model value.

Average days inventory remains unsold.

Average days the company takes to pay suppliers.

Average days needed to collect customer invoices.

An adjustment for the entity's own default risk.

How much debt the business can safely support.

A rule the borrower must follow under a loan agreement.

The adjustment from enterprise value to the price for shares.

A liability deducted from enterprise value like debt.

Debt divided by EBITDA.

Future tax benefit from deductions, losses or credits.

Tax effects created by fair-value adjustments in an acquisition.

Future tax payable because accounting and tax values differ.

Present value of pension benefits employees have earned.

A retirement plan where the employer's obligation is limited to fixed contributions.

Replacement cost today minus all loss in value.

Spreading a tangible asset's cost over its useful life.

A contract whose value depends on another price, rate or variable.

A reduction because the interest cannot control the business.

A reduction because the interest is hard to sell.

A reduction for shares with weaker voting rights.

The required return used to convert future cash into today's value.

Forecast cash flows are discounted back to today's value.

Values shares from the present value of expected dividends.

Converting future money into today's value.

Values customer relationships by isolating the profit they generate beyond routine distribution returns.

The percentage of profit paid to shareholders.

Approximate bond-price sensitivity to interest-rate changes.

Extra purchase price paid only if future targets are met.

Operating profit before interest and tax.

Operating profit before interest, tax and intangible amortisation.

Operating earnings before interest, tax and non-cash depreciation/amortisation.

How long an asset can economically produce benefits.

Profit left after charging for the cost of all capital.

The date for which the value is estimated.

The true yield including fees, discounts and timing.

The value of the business operations before debt and excess cash adjustments.

Enterprise value divided by EBIT.

Enterprise value divided by EBITDA.

Enterprise value divided by revenue.

Sustainability-related factors that can affect value.

A fair price between identified parties, considering their particular interests.

A residual ownership claim after liabilities.

Accounting for an investment by recognising the investor's share of results.

Extra return investors require for holding equities instead of risk-free assets.

The value belonging to shareholders.

Value from earnings left after paying for supporting assets.

Terminal value based on a market multiple at the end of the forecast.

The current price to sell an asset or transfer a liability.

The discounted expected loss from possible borrower defaults.

The average return expected across possible outcomes.

The amount expected to be owed when default occurs.

A legally defined market-based value that varies by jurisdiction.

The market-based exit price at the measurement date.

Market sale value minus direct selling costs.

Debt measured at fair value, with most value changes in OCI.

An optional equity category with fair-value changes kept in OCI.

Fair value changes are recorded in profit or loss.

Cash or a contractual right to receive financial value.

An investor buying mainly for financial return.

A contract creating financial rights and obligations.

A contractual obligation to pay cash or financial value.

A limited period over which the asset will be used.

Expected proceeds from a rapid, pressured sale.

A sale under pressure with limited time or choice.

A market-implied rate for a future period.

Cash available to shareholders after operations, investment and debt flows.

Cash available to all capital providers before financing flows.

Loss in value because the asset is inefficient or outdated.

The business is expected to keep operating.

The value of a business operating as a complete unit.

The residual acquisition value not assigned to identifiable net assets.

Assigning goodwill to the business units that benefit from it.

Values an intangible by assuming the related business must be newly built around it.

Profit after direct cost of sales.

Revenue left after direct costs.

Spending to expand the business.

Uses valuation multiples from similar listed companies.

The safety margin before an impairment would arise.

Accounting that matches hedge gains and losses with the risk being hedged.

The legally allowed and practical use that produces the highest value.

Comparing financial results across time.

An asset that can be separately recognised rather than included in goodwill.

A warning sign that an asset may have lost value.

The write-down when carrying value exceeds recoverable value.

Market-expected volatility inferred from option prices.

An acquired unfinished research or development project.

Value based on the present value of future benefits.

The lessee's estimated borrowing rate for a similar secured loan.

No foreseeable end to the asset's benefit period.

A right to reimbursement from the seller for a specified acquired exposure.

A valuable non-physical asset that can be separately identified.

What the valuation will be used for.

The people expected to rely on the valuation.

How many times operating earnings cover interest expense.

The return built into the lease pricing.

Risk from changes in market interest rates.

The break-even annual return implied by the cash flows.

The capital tied up in business operations.

The value to a specific buyer or owner.

Following the applicable International Valuation Standards.

Shared control requiring unanimous agreement.

A jointly controlled entity where parties own the net assets.

Difficulty selling an asset quickly at a known price.

A contract giving control of an identified asset for a period.

The present value of future lease payments owed.

The expected enforceable period the asset will be leased.

How long legal rights over the asset remain.

An unadjusted active-market price for an identical item.

Market-observable data other than a direct identical-item price.

A model input not directly observable in the market.

Using debt to increase the amount invested.

Equity risk beta after including debt financing.

Expected credit loss over the instrument's full remaining life.

Valuing assets on the basis that the business will be wound down.

A reduction for limited ability to sell quickly.

The percentage expected to be lost after a default.

Spending needed to keep current operations running.

An ownership stake that usually carries voting control.

Value based on prices paid for comparable items.

Share price multiplied by shares outstanding.

A market price ratio used to estimate value.

A typical willing and informed buyer or seller in the relevant market.

Risk from movements in market prices and rates.

The expected price in a normal arm's-length market transaction.

How easily an asset can be sold.

A non-physical asset that supports marketing and brand recognition.

Whether something is important enough to affect decisions.

The date on which an accounting value is measured.

Up to one year to finalise provisional acquisition accounting.

Assumes annual cash flow arrives around the middle of the year.

An ownership stake that does not control the business.

Risk that a valuation model is wrong or misused.

Tests many possible outcomes to estimate expected value and risk.

The accessible market giving the best net outcome when no principal market exists.

Values a key intangible from its future cash flows after charges for supporting assets.

Value divided by a business metric.

Debt minus usable cash.

Pension obligation minus plan assets.

Profit after all expenses and tax.

After-tax operating profit before financing costs.

Present value of benefits minus present value of costs.

Tangible assets minus liabilities.

A contract preventing someone from competing for a period.

The part of a subsidiary owned by other shareholders.

Choosing full fair value or proportionate net assets for outside shareholders.

A company-defined metric outside IFRS rules.

An asset outside the core operations.

Risk that a liability will not be performed.

Earnings adjusted to represent sustainable normal operations.

A model input supported by market data.

A loss-making contract that costs more to fulfil than it benefits.

Operating profit as a percentage of revenue.

Short-term operating investment tied up in the business.

Values rights with option-like payoffs.

Credit and liquidity spread after removing embedded-option effects.

An optional shortcut in deciding whether an acquisition is a business.

The value of confirmed work not yet completed.

Expected sale proceeds when assets can be marketed normally during a wind-down.

A normal market sale, not a forced or distressed sale.

Growth from the existing business rather than acquisitions.

The entity's own risk of default.

A legal right protecting an invention.

Loss in value from physical wear or damage.

Assets set aside to pay employee benefits.

An adjustment based on risks managed on a net portfolio basis.

Uses multiples from past acquisitions of similar businesses.

The assumed way the asset will be used or sold.

What future money is worth today.

Share value divided by book equity.

Equity value divided by net earnings.

Equity value divided by revenue.

The main market with the most trading activity.

Adjusted figures showing a transaction as if it had already happened.

The estimated chance of default.

Combines several possible outcomes using probability weights.

A well-supported expert decision where no single answer is automatic.

A recorded liability with uncertain amount or timing.

Allocating an acquisition price to assets, liabilities and goodwill.

Liquid current assets compared with short-term liabilities.

A reasonable low-to-high interval for value.

A previously granted contract right that the buyer gets back.

A cross-check that the valuation result makes sense.

Recognising acquired assets and liabilities separately from goodwill.

Combining different valuation results into a final conclusion.

The higher of market-sale value less costs and value in use.

Values an intangible from the royalties the owner does not have to pay.

How much useful life is left.

The current cost of a new equally useful asset.

A buyer's new employee award replacing an acquired company's award.

The date the valuation report is released.

The current cost to make an exact copy.

The minimum return investors require.

Profit after charging for the required return on capital.

Expected value left at the end of useful life.

Profit earned relative to shareholders' equity.

After-tax operating return on capital used in the business.

Sales or income from normal business activities.

How fast sales are increasing or decreasing.

A deal where the legal buyer is treated as the accounting acquiree.

The lessee's accounting asset for using leased property or equipment.

Extra return required for taking risk.

The return on a very low-risk investment.

The fee rate paid to use intellectual property.

Selling an asset and then leasing it back.

Compares value under different possible future cases.

The agreed boundaries and requirements of the valuation.

Shows how value changes when key assumptions change.

Able to be transferred or licensed separately.

An item connected with the deal but not part of the purchase price.

Paying employees or suppliers with shares or share-linked awards.

A meaningful worsening of credit risk since the asset was first recognised.

The ability to influence important decisions without controlling them.

Capitalises one period of earnings above a fair return on tangible assets.

Extra return sometimes required for smaller companies.

A disclosed assumption that differs from actual or normal conditions.

A buyer who can obtain unique benefits from the asset.

The current market rate for immediate settlement.

Obtaining control after buying shares in stages.

An operating buyer seeking strategic benefits.

Exactly what is being valued.

A meaningful process needed for an acquired set to be a business.

Adds asset values and subtracts liabilities.

Growth supportable without changing financing policy.

Extra value created by combining businesses or assets.

A benefit created by combining businesses.

The value of an asset or liability for tax calculation.

Tax savings created by deductible expenses.

A non-physical asset based on technology or know-how.

A difference between accounting value and tax value that reverses over time.

The long-run growth rate after the detailed forecast.

The value of all cash flows after the forecast period.

Money today is worth more than the same money later.

A brand identifier such as a name or logo.

Deal fees generally expensed rather than added to purchase price.

A value ratio observed in completed deals.

The actual price paid in a transaction.

Expected loss from defaults that could occur in the next 12 months.

The asset on which a contract is based.

The accounting level at which an item is measured.

Business risk beta before debt.

A model input based on estimates rather than direct market data.

The period the entity expects to use the asset.

The process of estimating value.

A broad category of valuation methods.

The date the value applies to.

A specific technique used to calculate value.

The calculation framework used to turn assumptions into value.

A step carried out as part of a valuation method.

A specific method used to estimate fair value.

How uncertain the value estimate is.

The present value of cash flows the entity expects from continuing to use the asset.

The present value of tax savings from amortising the asset for tax.

Explaining differences between actual and expected results.

Showing each financial statement item as a percentage of a total.

How widely prices or returns move.

Control obtained through voting rights.

The blended required return of debt and equity investors.

Value equals the cash-flow benefit of having the asset.

Short-term resources and obligations used in operations.

A deal-price change for working capital above or below normal.

Interest rates across different maturities.