ESG Score

A quantitative measure of data fitness for its intended use, typically assessed across dimensions including accuracy, completeness, consistency, timeliness, uniqueness, and validity. Data quality scores enable organisations to monitor and improve the reliability of their data assets, prioritise remediation efforts, and establish trust in analytical outputs.

A customer loyalty metric derived from a single survey question asking respondents how likely they are to recommend a company, product, or service on a scale of zero to ten. NPS is widely used as a proxy for customer relationship quality and brand strength, both of which are critical intangible assets influencing long-term enterprise value.

A framework for evaluating a company's performance across environmental impact, social responsibility, and corporate governance practices. ESG factors are increasingly material to valuation, investor mandates, and regulatory compliance, and intersect with intangible asset categories such as reputation and organisational capital.

The framework of policies, procedures, and organisational structures that guide the responsible development, deployment, and monitoring of artificial intelligence systems. AI governance encompasses risk management, ethical guidelines, regulatory compliance, model validation, and accountability mechanisms.

The return that could have been earned by investing in the next best alternative of comparable risk. Opportunity cost of capital is the foundation for discount rates used in intangible asset valuations and investment decisions, ensuring that capital is allocated to its most productive use.

The EU regulatory framework for insurance and reinsurance companies, establishing risk-based capital requirements, governance standards, and supervisory reporting obligations. Solvency II uses a three-pillar structure: quantitative requirements (Pillar 1), governance and risk management (Pillar 2), and disclosure and transparency (Pillar 3).

An additional return added to the cost of equity to reflect idiosyncratic risks unique to the subject company that are not captured by beta, the equity risk premium, or the size premium. Common factors justifying a specific company risk premium include customer concentration, key person dependence, regulatory exposure, limited product diversification, geographic concentration, and early-stage business risk.

The weighted average cost of capital, representing the blended rate of return a company must earn on its assets to satisfy both debt holders and equity investors. WACC is used as the discount rate in DCF valuations and as a hurdle rate for investment decisions.