Underlying
From ACT Wiki
1.
A measure which is comparable between different periods or organisations, after removing distorting effects from one-off items, or other distorting items such as exchange rate changes.
Underlying revenue and profitability are common examples.
Underlying measures should however be treated with caution, as management may - consciously or unconsciously - be influenced to present figures in a way that reflect well on its own performance.
Inflation is sometimes quoted on an 'underlying' or 'core' basis - excluding certain items considered non-typical - as well as the on the usual 'headline' basis.
2.
Underlying asset.
3.
Underlying price.
4.
A risk exposure being hedged, often by the use of a derivative instrument.
