Fundamental Analysis & Valuation — 4 Terms Defined

Impairment Fundamental Analysis & Valuation ₹ crore A write-down of an asset's carrying value when its recoverable amount falls below what the balance sheet records. Impairment Loss = Carrying Amount - Recoverable Amount, where Recoverable Amount is the higher of fair value less costs to sell and value in use

Interest Coverage Ratio Fundamental Analysis & Valuation ratio (x, times) Operating profit divided by interest expense, measuring how many times over the company's earnings can pay its interest bill. Interest Coverage = Operating Profit (EBIT) / Interest Expense

Intrinsic Value Fundamental Analysis & Valuation ₹ The value of a business justified by the cash it can be expected to produce over its life, discounted to today. Intrinsic Value = Sum of Future Free Cash Flows discounted at the required rate of return

Inventory Turnover Ratio Fundamental Analysis & Valuation ratio (x, times) Cost of goods sold divided by average inventory, showing how many times stock is sold and replaced in a year. Inventory Turnover = Cost of Goods Sold / Average Inventory; Inventory Days = 365 / Inventory Turnover