Financial Glossary
Plain-English definitions of the investing, valuation, net-worth and FIRE terms used across Worthmap, each with a worked example and a link to the calculator that puts it to work.
Cost of Capital & WACC
- WACC (Weighted Average Cost of Capital)
- Cost of Equity
- Cost of Debt
- CAPM (Capital Asset Pricing Model)
- Beta
- Risk-Free Rate
- Equity Risk Premium
- Discount Rate
Value Investing & Valuation
- Intrinsic Value
- Margin of Safety
- Graham Number
- Discounted Cash Flow (DCF)
- Terminal Value
- Free Cash Flow
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Book Value per Share
- Earnings per Share (EPS)
- P/E Ratio
- Enterprise Value
- EV/EBITDA
- Perpetuity
- Capital Expenditure (CapEx)
- Operating Cash Flow
Dividends & Income
Net Worth & Multi-Currency
- Net Worth
- Currency Exposure
- Asset Allocation
- Base Currency
- Portfolio Rebalancing
- Exchange Rate
- Return on Investment (ROI)
FIRE & Compounding
- FIRE (Financial Independence, Retire Early)
- Safe Withdrawal Rate
- Compound Interest
- Present Value
- Future Value
- Dollar-Cost Averaging
- SIP (Systematic Investment Plan)
- Coast FIRE
- Lean FIRE
- Fat FIRE