Glossary

The fundamentals, in plain English

Clear, no-jargon definitions of the financial metrics Investory uses to score your stocks.

D/E

Debt-to-Equity Ratio

The debt-to-equity ratio compares a company's total debt to its shareholders' equity, showing how much of the business is funded by borrowing versus owners' capital.

Read definition
ROE

Return on Equity (ROE)

Return on equity measures how much net profit a company generates for every rupee of shareholders' equity — a core gauge of how efficiently it compounds owners' capital.

Read definition
EBITDA

EBITDA Margin

EBITDA margin is earnings before interest, tax, depreciation and amortisation expressed as a percentage of revenue — a clean read on core operating profitability.

Read definition
OPM

Operating Margin

Operating margin is operating profit as a percentage of revenue, showing how much the business keeps from each rupee of sales before interest and tax.

Read definition
P/E

Price-to-Earnings Ratio (P/E)

The price-to-earnings ratio divides a stock's price by its earnings per share, showing how many rupees investors pay for each rupee of annual profit.

Read definition
PEG

PEG Ratio

The PEG ratio divides the P/E ratio by the earnings growth rate, adjusting valuation for growth so a high-P/E fast grower can still look reasonably priced.

Read definition
FCF

Free Cash Flow (FCF)

Free cash flow is the cash a company generates from operations after capital expenditure — the real cash left over to pay debt, dividends, or reinvest.

Read definition
ICR

Interest Coverage Ratio

The interest coverage ratio divides operating profit by interest expense, showing how comfortably a company can pay the interest on its debt from its earnings.

Read definition