Business valuation

Inflation is when the prices of goods and services increase over time. While the prices of goods and services increase, the purchasing power or value of money decreases.

Future value is the value of a current asset at a specific time in the future calculated based on an assumed growth rate.

CAPM is a measure used by investors to evaluate the expected return on investments. It allows investors to diversify their investments to achieve the desired return based on the risk of each investment.

Time value of money describes how the sum of money that you hold currently is worth more than the equivalent sum in the future.

Equity-risk premium is the difference between expected returns from the stock market and the expected returns from risk-free investments.