Valuation Glossary

Economic life refers to the period when an asset or investment is useful and generates economic benefits. It is the time frame when the asset is productive and can generate income or returns. Economic life is influenced by factors like the asset's condition, market demand, and obsolescence. It is usually shorter than the asset's physical life. Determining economic life helps with financial planning and decision-making about when to replace or dispose of an asset. Different industries and assets have varying economic lives based on factors like technology and demand. Overall, economic life tells us how long an asset will be economically useful.

Economic benefits are the positive financial advantages gained from economic activities. They include things like profits, income, wages, wealth creation, and consumer benefits. Economic benefits can improve individuals' financial well-being, help businesses grow, and contribute to the overall development of society. They can also include social and environmental benefits that enhance people's lives and promote sustainability.

Dual listed companies refer to companies that are listed on more than one stock exchange, allowing their shares to be traded in multiple markets.

The Dividends Received Deduction (DRD) is a tax deduction available to corporations in the United States that receive dividends from other domestic corporations.

Divestiture refers to the process of a company selling, liquidating, or otherwise disposing of a business unit, subsidiary, or asset.