Steiglitz's Equivalents

Steiglitz’s Equivalents refer to different ways of measuring the value of a business or investment, ensuring these measures are all consistent and comparable. They are alternative financial formulas—like net present value, internal rate of return, or payback period—that reflect the same underlying economic reality. By using these equivalents, analysts can evaluate a project’s profitability and risk from multiple angles, gaining a comprehensive understanding of its financial viability. Essentially, Steiglitz's Equivalents help confirm that different assessment methods lead to similar conclusions about an investment’s worth, providing confidence in decision-making.