Internal Rate of Return (IRR) - Calculator & Formula
Calculate the Internal Rate of Return (IRR) using our free calculator. Understand IRR with our definition and formula to assess investment profitability.| Corporate Finance Institute
Calculate the Internal Rate of Return (IRR) using our free calculator. Understand IRR with our definition and formula to assess investment profitability.| Corporate Finance Institute
The risk-free rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.| Corporate Finance Institute
This guide shows you step-by-step how to build comparable company analysis ("Comps") and includes a free template and many examples.| Corporate Finance Institute
The cost of debt is the return that a company provides to its debtholders and creditors. Cost of debt is used in WACC calculations for valuation analysis.| Corporate Finance Institute
Net Working Capital (NWC) is the difference between a company's current assets (net of cash) and current liabilities (net of debt) on its balance sheet.| Corporate Finance Institute
This effective annual interest rate calculator helps you calculate the EAR given the nominal interest rate and number of compounding periods.| Corporate Finance Institute
The Rate of Return (ROR) is the gain or loss of an investment over a period of time copmared to the initial cost of the investment expressed as a percentage.| Corporate Finance Institute
Unlevered Beta (Asset Beta) is the volatility of returns for a business, without considering its financial leverage. It only takes into account its assets.| Corporate Finance Institute
The market risk premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.| Corporate Finance Institute
Equity risk premium is the difference between returns on equity/individual stock and the risk-free rate of return.| Corporate Finance Institute
Enterprise Value, or Firm Value, is the entire value of a firm equal to its equity value, plus net debt, plus any minority interest| Corporate Finance Institute
EBITDA or Earnings Before Interest, Tax, Depreciation, Amortization is a company's profits before any of these net deductions are made.| Corporate Finance Institute
The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of a security.| Corporate Finance Institute
Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.| Corporate Finance Institute
A hurdle rate, or minimum acceptable rate of return (MARR), is the minimum required rate of return or target rate that investors expect to receive on an investment.| Corporate Finance Institute
EV/EBITDA is used in valuation to compare the value of similar businesses by evaluating their Enterprise Value (EV) to EBITDA multiple relative to an average.| Corporate Finance Institute
