An informal mathematical computation, often performed on a scrap of paper such as an envelope. A back-of-the-envelope calculation uses estimated and/or rounded numbers to quickly develop a ballpark figure. The result should be more accurate than a guess, but will be less accurate than a formal calculation performed using precise numbers and a spreadsheet or calculator.

Back-of-the-envelope calculations might be used to determine whether further research and more detailed calculations are warranted. For example, an investor might look at a company's annual report and do a back-of-the-envelope calculation to get its price-to-earnings ratio. If it is low enough to imply value, the investor can do a proper calculation which might include factoring in the weighted average shares outstanding for the year. If the quick estimate gave a high P/E ratio, time could be saved.

www.sciencedirect.com [PDF]

… 2. These formulas permit some illuminating back-of-the-envelope calculations … suggests a (constant-consumption) compensated elasticity of labor supply around 3. 6 If we raise σ to 3 in our calculation, the revenue … The only equation that comes from household behavior is Eq …

www.sciencedirect.com [PDF]

… 2. These formulas permit some illuminating back-of-the-envelope calculations … suggests a (constant-consumption) compensated elasticity of labor supply around 3. 6 If we raise σ to 3 in our calculation, the revenue … The only equation that comes from household behavior is Eq …

www.degruyter.com [PDF]

… 2. These formulas permit some illuminating back-of-the-envelope calculations … suggests a (constant-consumption) compensated elasticity of labor supply around 3. 6 If we raise σ to 3 in our calculation, the revenue … The only equation that comes from household behavior is Eq …

onlinelibrary.wiley.com [PDF]

… 2. These formulas permit some illuminating back-of-the-envelope calculations … suggests a (constant-consumption) compensated elasticity of labor supply around 3. 6 If we raise σ to 3 in our calculation, the revenue … The only equation that comes from household behavior is Eq …

www.tandfonline.com [PDF]

… 2. These formulas permit some illuminating back-of-the-envelope calculations … suggests a (constant-consumption) compensated elasticity of labor supply around 3. 6 If we raise σ to 3 in our calculation, the revenue … The only equation that comes from household behavior is Eq …

www.jstor.org [PDF]

… 2. These formulas permit some illuminating back-of-the-envelope calculations … suggests a (constant-consumption) compensated elasticity of labor supply around 3. 6 If we raise σ to 3 in our calculation, the revenue … The only equation that comes from household behavior is Eq …

www.tandfonline.com [PDF]

… 2. These formulas permit some illuminating back-of-the-envelope calculations … suggests a (constant-consumption) compensated elasticity of labor supply around 3. 6 If we raise σ to 3 in our calculation, the revenue … The only equation that comes from household behavior is Eq …

onlinelibrary.wiley.com [PDF]

… 2. These formulas permit some illuminating back-of-the-envelope calculations … suggests a (constant-consumption) compensated elasticity of labor supply around 3. 6 If we raise σ to 3 in our calculation, the revenue … The only equation that comes from household behavior is Eq …

Tags:2020analysisautobasedbasicbusinesscalculatecalculationcalculationscalculatorschinacompanycorporatecostsdataeconomiceconomicsenvelopeestatefinancefinancialfirmsformulasgrowthhouseholdimpactinequalityinvestmentlaborlevelloanmillionmonetarypaybackperiodpolicyprojectproviderateratiorealreviewsovereignsuggeststheorytimeunderstand

## Leave a Reply