What Is the Enterprise Value-to-Revenue Multiple (EV/R)? The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company’s enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used
What Is Ex-Ante? The term ex-ante refers to future events that are based on forecasts or predictions rather than concrete results. Translated from Latin, it means before the event. Ex-ante can be used to describe the potential returns of a particular security or company. Much of the analysis conducted in the markets is ex-ante, focusing
What Is an Exceptional Item? An exceptional item is a charge incurred by a company that must be noted separately in its financial report in accordance with Generally Accepted Accounting Principles (GAAP). Despite the name, such items are considered to be ordinary business charges but they must be separated out for the sake of financial
What Is an Exception Item? An exception item is a banking term used to describe a check or other payment that cannot be processed or which is interrupted. Reasons for this obstacle may include the fact that a stop payment order has been made, a customer’s account has been closed, there are insufficient funds in
What Is Excess Capacity? Excess capacity is a condition that occurs when demand for a product is less than the amount of product that a business could potentially supply to the market. When a firm is producing at a lower scale of output than it has been designed for, it creates excess capacity. The term excess
What Is Excess Cash Flow? Excess cash flow is a term used in loan agreements or bond indentures and refers to the portion of cash flows of a company that are required to be repaid to a lender. Excess cash flow is typically cash received or generated by a company in the form of revenues
What Is the Excess Crude Account (ECA)? The Excess Crude Account (ECA) is the name of a Nigerian government fiscal account that was created to save revenues—in excess of the budgetary benchmark price—that were generated from the sale of oil. Key Takeaways The Excess Crude Account (ECA) is a fund established in 2004 by the
What Is a Eurobond? A Eurobond is a debt instrument that’s denominated in a currency other than the home currency of the country or market in which it is issued. Eurobonds are frequently grouped together by the currency in which they are denominated, such as eurodollar or Euro-yen bonds. Since Eurobonds are issued in an
What Is Eurocommercial Paper? Eurocommercial paper (ECP) is a form of unsecured, short-term debt that is issued by a bank or corporation in the international money market. Notably, ECPs are denominated in a currency that is different from the domestic currency of the market where the paper—debt security, or bond—is issued. Note that the “euro”
What Is Eurocurrency? Eurocurrency is currency held on deposit by governments or corporations operating outside of their home market. For example, a deposit of U.S. dollars (USD) held in a British bank would be considered eurocurrency, as would a deposit of British Pounds (GBP) made in the United States. Key Takeaways The term eurocurrency refers
