Home Wikituition Browse all terms Categories
Random term

Fundamental Analysis & Valuation

8 terms


A–Z
All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Filtering by: Fundamental Analysis & Valuation Starts with D Clear all
Fundamental Analysis & Valuation

Debt Service Coverage Ratio

Cash available for debt service divided by the total of interest and principal due in the period.

DSCR = Cash Available for Debt Service / (Interest + Principal Repayment Due) ratio (x, times)
Fundamental Analysis & Valuation

Debt-to-Equity Ratio

Total borrowings divided by shareholders' equity, measuring how much of the business is funded by lenders relative to owners.

Debt-to-Equity = Total Debt / Shareholders' Equity ratio (x, times)
Fundamental Analysis & Valuation

Debtor Turnover Ratio

Revenue divided by average trade receivables, showing how many times a year credit sales are collected.

Debtor Turnover = Revenue / Average Trade Receivables; Debtor Days = 365 / Debtor Turnover ratio (x, times)
Fundamental Analysis & Valuation

Diluted Earnings per Share

Earnings per share recalculated as if every instrument convertible into equity had already been converted.

Diluted EPS = Adjusted Profit / (Weighted Average Shares + Shares from Conversion of Dilutive Instruments)
Fundamental Analysis & Valuation

Dilution

The reduction in existing shareholders' proportional ownership and per-share claims caused by issuing new shares.

New Ownership % = Old Shares Held / (Old Shares Outstanding + New Shares Issued) x 100 %
Fundamental Analysis & Valuation

Discounted Cash Flow

A valuation method that estimates a business's worth as the present value of the cash it is expected to generate.

Value = Sum of (Cash Flow in Year t / (1 + Discount Rate) raised to t) + Present Value of Terminal Value ₹ crore
Fundamental Analysis & Valuation

Dividend Discount Model

A valuation method that values a share as the present value of all the dividends it is expected to pay.

Value = Sum of (Expected Dividend in Year t / (1 + Required Return) raised to t)
Fundamental Analysis & Valuation

DuPont Analysis

A decomposition of return on equity into profit margin, asset turnover and financial leverage, showing what drives the return.

ROE = Net Profit Margin x Asset Turnover x Equity Multiplier = (Profit/Sales) x (Sales/Assets) x (Assets/Equity) %