Measure how much of the return was driven by a private equity deal having more (or less) leverage than the typical public or family-held peer.
Module Category: Market or Sector Drivers
Key Concept: Gearing measures how much debt amplifies equity gains and losses or how much cash on a company’s balance sheet dampens equity gains and losses. The framework allows analysts to measure how much extra gearing occurs due to a company has a capital structure that is different from the typical sector peer.