Annual Premium Equivalent - APE
 |
Definition of 'Annual Premium Equivalent - APE'
A common sales measure technique used by insurance companies in the United Kingdom where the sales of a given entity are estimated by taking the value of regular premiums, plus 10% of any new single premiums written for the fiscal year. The premiums earned by a firm can be extended to include all revenues of a given firm.
|
 |
Investopedia explains 'Annual Premium Equivalent - APE'
When estimating any future metric, it is important to consider any unforeseen events, and how these events may impact your estimate. For example, when forecasting a firm's sales revenues, you would want to consider the competition and what there product lines and pricing strategy will be over the forecasting period.
This will allow you to fine-tune your estimate, which will hopefully be more applicable, and provide you with a margin of safety.
|
-
If you're looking to get a job as an analyst, you'll need to know how to work it.
Read More »
-
Consensus estimates can send stocks spiraling - but are they representing reality?
Read More »
-
Predicting sales growth can be something of a black art - unless you ask the right questions.
Read More »
-
|
|
