Understanding "Worth" in Investment & International Finance
In the context of investment and international finance, the word "worth" generally refers to the value of an asset, company, or investment. Here's a detailed breakdown of its meaning and applications in finance.
Full Meaning of "Worth" in Investment & Finance
1. Market Value
The current price at which an asset or security can be bought or sold.
Example: "The company's net worth is $1 billion."
2. Intrinsic Value
The estimated true value of an investment based on fundamental analysis.
Example: "The stock is trading below its intrinsic worth."
3. Net Worth
The total assets minus total liabilities of an individual or company.
Example: "The investor's net worth increased after the IPO."
4. Present Value (PV)
The current worth of future cash flows, discounted at an appropriate rate.
Example: "The project's worth was calculated using discounted cash flow (DCF) analysis."
5. Worth as a Measure of Desirability
The perceived benefit or utility of an investment.
Example: "This deal is worth considering due to its high return potential."
Key Synonyms for "Worth" in Finance
- Value
- Valuation
- Equity
- Price
- Cost
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