Return on equity (ROE): A measure of financial performance calculated by dividing net income by shareholders’ equity.

Net Operating Loss Carryforward: A net operating loss (NOL) occurs when a company’s allowable deductions exceed its taxable income within a tax period. The NOL can generally be used to offset a company’s tax payments in other tax periods through an Internal Revenue Service (IRS) tax provision called a loss carryforward .

EBITDA: EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an alternate measure of profitability to net income.

Enterprise Value: Enterprise value (EV) measures a company’s total value, often used as a more comprehensive alternative to market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company’s balance sheet.

Net Present Value (NPV): NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Net Cash: Net cash is a figure that is reported on a company’s financial statements. It is calculated by subtracting a company’s total liabilities from its total cash. The net cash figure is commonly used when evaluating a company’s cash flows.

Free cash flow (FCF): Represents the cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Book Value: Book value is equal to the cost of carrying an asset on a company’s balance sheet, and firms calculate it by netting the asset against its accumulated depreciation.

Tax information contained within this article is provided to you for informational purposes only, and should not be considered tax advice. Please consult your tax advisor for further assistance.

FUND RISKS: Risks that could negatively impact returns include: fluctuations in currencies versus the US dollar, political/social/economic instability in foreign countries where the Fund invests, lack of diversification, and adverse general market conditions. For a full disclosure of principal investment risks, please refer to the Fund’s Prospectus.

Annualized performance as of 3/31/23 (Institutional Share Class: TAVFX): 1yr 11.12%, 3 year 42.69%, 5yr 8.55%, 10yr 7.72%. Gross expenses (Institutional Share Class): 1.22%. Net expenses: 1.20% (contractual waiver in place through at least 3/1/2024).

Past performance is no guarantee of future results. Mutual Fund returns include reinvestment of all distributions. Returns are annualized for periods longer than one year. The returns represent past performance and current performance may be lower or higher than performance quoted above. Investment return and principal value fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. For the most recent month-end performance, please visit the Fund’s website at thirdave.com.

Please see top Ten Holdings here. Earnings growth is not a forecast of the Fund’s future performance. Holdings and dividends are subject to change.

Third Avenue Funds are offered only by prospectus. The prospectus contains important information, including investment objectives, risks, advisory fees and expenses. Please read the Prospectus carefully before investing or sending money. For a current Prospectus please visit our website at thirdave.com, or call 800-443-1021.

Distributor of Third Avenue Funds: Foreside Fund Services, LLC.

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