The net present value of an asset that is only financed through equity, plus the present value of all levered cash flows. Because the present value of the equity is also the present value of unlevered cash flows, calculating the levered and unlevered parts allow interest payment deductions from the use of debt to be reviewed separately. Analysis using the adjusted present value is often used in highly leveraged transactions.
Related information about adjusted present value (APV):
- Adjusted present value - Wikipedia, the free encyclopedia
Adjusted Present Value (APV) is a business valuation method. APV is the net present value of a project if financed solely by ownership equity plus the present ...
- Adjusted Present Value (APV) Definition | Investopedia
The Net Present Value (NPV) of a project if financed solely by equity plus the Present Value (PV) of any financing benefits (the additional effects of debt).
- The Adjusted Present Value Approach
In the adjusted present value (APV) approach, we begin with the value of the firm without debt. As we add debt to the firm, we consider the net effect on value by ...
- Adjusted Present Value (APV) Analysis
The adjusted present value ("APV") analysis is similar to the DCF analysis, except that the APV does not attempt to capture taxes and other financing effects in a ...
- Adjusted Present Value (APV)
The Adjusted Present Value (APV) can be delineated as the Net Present Value of a project, financed exclusively by equity, added to the Present Value (PV) of ...
- What is adjusted present value (APV)? definition and meaning
Definition of adjusted present value (APV): The net present value of an asset that is only financed through equity, plus the present value of all levered cash flows.
- Adjusted present value
Adjusted present value. Adjusted present value (APV) is similar to NPV. The difference is that is uses the cost of equity as the discount rate (rather than WACC ).
- Adjusted present value approach - Rice University -- Web Services
ADJUSTED PRESENT VALUE (APV). The key: separate operating cash flows from financing side effects. VProject = VOperating CFs + VFinancing Side Effects ...