A component that is unrelated to future free cash flows or future earnings and is not pertinent to assessing current share price is a noise component.

Name: A component that is unrelated to future free cash flows or future earnings and is not pertinent to assessing current share price is a noise component.
Brand: Quizplus
Rating: 4.9 (64 reviews)

Question

Quizplus · Accepted Answer

A noise component is an irrelevant factor that does not affect future free cash flows or earnings, and therefore is not relevant in assessing the current share price.

A Component That Is Unrelated to Future Free Cash Flows