Adjusted present value (APV)


 

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Adjusted present value (APV)

The net present value analysis of an asset if financed solely by equity (present value of unlevered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leveraged buyout.



Adjusted present value (APV)

Similar Matches

Adjusted basis

Adjusted basis

Price from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for.


Risk adjusted discount rate

Risk adjusted discount rate

The rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment.


Risk adjusted return

Risk adjusted return

Often we subtract from the rate of return on an asset a rate of return from another asset that has similar risk. This gives an abnormal rate of return that shows how the asset performed over and above a benchmark asset with the same risk. We can also use the beta against the benchmark to calculate an alpha, which is also risk-adjusted performance.


Adjusted Gross Income

Adjusted Gross Income

Gross income of a building it fully rented, less an allowance for estimated vacancies.


Risk adjusted return

Risk adjusted return

Return earned on an asset normalized for the amount of risk associated with that asset.


Further Suggestions

Adjusted exercise price
Adjusted balance method
Risk adjusted profitability
Adjusted debit balance (ADB)
Seasonally adjusted
Adjusted gross income (AGI)
adjusted gross income
Inflation adjusted
adjusted earnings
Adjusted for inflation
Net adjusted present value


 
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