D/(D+E)- This is the market value estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated market value of equity for the entire sector. We assume that the book value of debt is roughly equal to the market value of debt.

 

D/E Ratio- Estimated using cumulated market value of equity for the sector and cumulated debt for the sector:

Debt/Equity Ratio for Sector = Cumulated Debt for Sector/Cumulated Market Value of Equity

Debt is defined as including both short term and long term debt (but not accounts payable or non-interest bearing liabilities), and the book value of debt is used as a proxy for market value of debt.

 

Damage to Physical Assets- Damage to Physical Assets under the Basel II Accord include operational risk events such as natural disasters, terrorism, vandalism.

 

Debt Ratio (Book Value)- This is the book estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated book value of equity for the entire sector.

 

Debt Ratio (Market Value)- This is the market value estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated market value of equity for the entire sector. We assume that the book value of debt is roughly equal to the market value of debt.

 

Debt/Equity Ratio- Estimated using cumulated market value of equity for the sector and cumulated debt for the sector:

Debt/Equity Ratio for Sector = Cumulated Debt for Sector/Cumulated Market Value of Equity

Debt is defined as including both short term and long term debt (but not accounts payable or non-interest bearing liabilities), and the book value of debt is used as a proxy for market value of debt.

 

Default- Default, the failure to pay interest or principal according to contractual terms, and occurs when a debtor or a counterparty is unable to make a timely payment or delivery.

 

Default Risk- Default risk is the potential loss due to default.

 

Default spread- This is the spread added on to the riskfree rate to estimate a pre-tax cost of borrowing.

 

Delta- Delta is the ratio of the price change of the derivative to the price change of the underlying asset.

 

Deposit- A deposit is money entrusted to a bank for safekeeping in a bank account that allows the depositor to withdraw these funds and any interest paid by the bank on the deposit.

 

Deposit Insurance- Deposit insurance is a promise by a government or an insurance system that, in the event of a bank failure, bank depositors will receive their deposits with that bank either partly or fully.

 

Depreciation- Includes both depreciation and amortization, as reported in the statement of cash flows. For the sector, we use the cumulated value of depreciation and amortization.

 

Derivative- A (financial) derivative is an instrument whose value "derives" from the value of a related underlying financial asset or commodity , and includes swaps, options, forwards, and futures.

 

Digital Options- In computer or mathematics jargon, a binary number is one which is given a value of either 0 or 1 and nothing else; in the case of derivatives, a binary option, sometimes referred to as a digital option (hereon we use only the term binary), is an option which pays either an asset out at expiry, or nothing at all based on whether or not the option expires in the money.

 

Disclosure- Disclosure is the dissemination of information about the conditions of a business that allows for a proper and transparent evaluation of that business.

 

Discounted Dividend Model (DDM)- The Discounted Dividend Model estimates the value of a company based on the theory that the value of the company equals the sum of the discounted value of all its future dividend payments.

 

Dividend- A dividend is that part of the earnings of a corporation that are distributed to its owners. A dividend is a distribution to shareholders and typically entails the payment of cash or additional shares.

 

Dividend Payout- Estimated by dividing the cumulated dividends, for the sector, by the cumulated net income for the sector.

 

Dividend Yield- Dividend per share divided by the current stock price. We have used the current annualized dividend per share (obtained by quadrupling the last quarter’s dividend per share).

 

Duration- Duration is a measure of price sensitivity for a fixed income instrument and quantifies the sensitivity of the price of a fixed-income investment to a small incremental change in interest rates.

ר רועי פולניצר, MBA ,CRM , FRM הינו הבעלים של שווי פנימי - ייעוץ והדרכהשווי פנימי, רועי פולניצר, ניהול סיכונים, הערכות שווי, Intrinsic Value, Roi Polanitzer, Risk Management, Valuation, VaR, FRM. PRM, CRM. GARP, PRMIA, IARM