Home > Glossary > H > Hurdle Rate
Illustration

Hurdle Rate

Hurdle rate is the minimum return a company expects on an investment or project to justify the risk. It’s often based on the cost of capital, adjusted for project risk. If the expected return is below the hurdle rate, the investment is usually rejected.

More Items

Holding Company Discount

Holding company discount refers to the reduction in the market value of a holding company compared to the total value…

Hard Asset

A hard asset is a tangible asset with intrinsic value, such as land, buildings, or commodities. These assets are often…

Historical Return

Historical return measures the past performance of an investment over a specific period. It helps evaluate trends, compare alternatives, and…