Fundamental Analysis & Valuation
8 terms
Debt Service Coverage Ratio
Cash available for debt service divided by the total of interest and principal due in the period.
Fundamental Analysis & ValuationDebt-to-Equity Ratio
Total borrowings divided by shareholders' equity, measuring how much of the business is funded by lenders relative to owners.
Fundamental Analysis & ValuationDebtor Turnover Ratio
Revenue divided by average trade receivables, showing how many times a year credit sales are collected.
Fundamental Analysis & ValuationDiluted Earnings per Share
Earnings per share recalculated as if every instrument convertible into equity had already been converted.
Fundamental Analysis & ValuationDilution
The reduction in existing shareholders' proportional ownership and per-share claims caused by issuing new shares.
Fundamental Analysis & ValuationDiscounted Cash Flow
A valuation method that estimates a business's worth as the present value of the cash it is expected to generate.
Fundamental Analysis & ValuationDividend Discount Model
A valuation method that values a share as the present value of all the dividends it is expected to pay.
Fundamental Analysis & ValuationDuPont Analysis
A decomposition of return on equity into profit margin, asset turnover and financial leverage, showing what drives the return.