Normalised Earnings

These are the cash flows used to calculate the Internal Rate of Return for the company over the review period. IRR is one of the options that can be chosen for the FS NROE. The cash flows measure the cash movements that would take place if a person bought the company outright in the year for an amount equal to beginning equity and then sold the company after year five for an amount equal to ending equity.

Related definitions:



Register for our
weekly investing report

Weekly insights, research & market commentary.

* Required fields

View our privacy policy

The information provided on this webpage and the rest of is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein. Please consider our Information Memorandum, Product Disclosure Statement and Financial Services Guide before investing in one of our products. Past performance is no guarantee of future returns.
  • Copyright © 2019 Clime Investment Management Limited
CALL 1300 788 568

Sign in to: