It covers market size and demand forecasts, investment and operating costs, financing structure, cash flow projections and sensitivity analyses. It may also be required by lenders and for incentive applications.
Related terms
Market size (TAM / SAM / SOM)The size of the total market for a product or service, the market the company can serve and the market share it can realistically obtain.Net present value and internal rate of returnNet present value is the discounted sum of an investment's future cash flows less the amount invested; the internal rate of return is the discount rate at which net present value is zero.Financial modellingBuilding a model that forecasts the future financial performance of a company or project, with linked income statement, balance sheet and cash flow.BetaA coefficient measuring the sensitivity of a share's return to changes in the market return, that is, its systematic risk.Break-even pointThe sales volume or amount at which total revenue equals total cost and the business makes neither profit nor loss.Capital asset pricing model (CAPM)A model that calculates the cost of equity from the risk-free rate, beta and the market risk premium.
Last updated: October 31, 2026 · This definition is for general information only.