Economic Growth Rate
DefinitionEconomic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Economic Growth Rate What is an 'Economic Growth Rate' An economic growth rate is a measure of economic...
Economic Derivative
What is an 'Economic Derivative' An economic derivative is a relatively new form of derivative contract (the first ones were traded in 2002) that is based on the future value of some national economic indicator, such as non-farm payrolls, the purchasing manager's index, retail sales levels and the gross domestic product. Most of these economic derivatives are...
Economic Depreciation
What is 'Economic Depreciation' Economic depreciation is a measure of the decrease in value of an asset over time. This form of depreciation usually pertains to real estate, which can lose value due to indirect causes such as the addition of new construction in close proximity to the property, road additions or closures, a decline in the...
Earmarking
What is 'Earmarking' Earmaking consists of funds (or capital) that are set aside to pay for a specific project or event. In some cases, the term is also synonymous with the word "flagged", or "marked", especially when used in certain congressional settings. Explaining 'Earmarking' Major financial institutions, as well as state or federal governments,...
Early Majority
What is 'Early Majority' The first sizable segment of a population to adopt an innovative technology. The early majority tends to be roughly 34% of the population, and will adopt a new product after seeing it used successfully by either "innovators" and "early adopters" that they know personally. People in this segment are less affluent and less...
Earnings Power Value (EPV)
What does 'Earnings Power Value - EPV' mean Earnings power value (EPV) is a technique for valuing stocks by making an assumption about the sustainability of current earnings and the cost of capital but assuming no further growth. Earnings power value (EPV) is a specific formula: Adjusted Earnings / Cost of Capital. While the formula is simple,...
Earning Potential
What is 'Earning Potential' The possible upside of the earnings that could be generated for each share outstanding of a particular stock. Earning potential reflects the largest possible profit that a corporation can make. It is often passed on to investors in the form of dividends. Greater earning potential drives up the price of a stock. ...
Eco-Communalism
What is 'Eco-Communalism' An economic/environmental philosophy focused upon local economies, sustainability and self-sufficiency. Eco-communalism is centered upon the belief that many self-sufficient local economies connected to one another will be a greater benefit to society as a whole than a centralized capitalistic one. The primary principles of eco-communalism include green economics, biodiversity and decentralization of government. ...
EBITDA-To-Interest Coverage Ratio
What is the 'EBITDA-To-Interest Coverage Ratio' The EBITDA-to-interest coverage ratio is a ratio that is used to assess a company's financial durability by examining whether it is at least profitably enough to pay off its interest expenses. A ratio greater than 1 indicates that the company has more than enough interest coverage to pay off its interest...
Earnings Before Interest, Tax, Amortization And Exceptional Items (EBITAE)
What is 'Earnings Before Interest, Tax, Amortization And Exceptional Items - EBITAE' An accounting metric often used to deduct the amortization of intangible assets to arrive at a value. Companies will use EBITAE not only as a measure of performance, but also to determine interest coverage capabilities. The eliminated items are often seen as factors that distort...