Buying a business at one valuation multiple and selling it at a higher one, capturing return from the <em>re-rating</em> itself rather than from earnings growth.
The blended cost of a company's debt and equity, weighted by their share of the capital structure — the <em>discount rate</em> used to value its future cash flows.
The value created when two combined businesses are worth more together than apart — usually from cost savings, and more speculatively from <em>revenue gains</em>.
Valuing a business by the multiples its publicly traded peers trade at — a <em>relative</em> valuation that prices a company against the market, not its cash flows.
EBITDA projected forward as if current conditions and recent actions <em>applied for a whole year</em>, rather than what was historically reported.
The valuation multiple a business is sold at on exit — the assumption that, set against the entry multiple, drives much of a deal's <em>projected return</em>.