Plain-English definitions for every term and concept used on this platform. Click any term to expand its full explanation.
What each share is worth on paper — total assets minus all debts, divided by shares outstanding.
A vehicle valued by what it holds (net asset value), not by growing operating earnings — outside what this platform's methods can price.
The smoothed annual growth rate of a number over multiple years, as if it grew by the same percentage each year.
A 0–100 score (shown as High, Moderate, or Low) for how much to trust an analysis's inputs — not a judgment on the company itself.
The minimum annual return you'd accept — we use 15% as the hurdle for all projections.
How much profit the company earned for each share of stock outstanding.
Cash the business generates after paying for everything it needs to keep running and growing.
The REIT equivalent of earnings — net income with real-estate depreciation added back, since property rarely actually loses value the way accounting assumes.
Healthy, Neutral, or Distressed — a check on earnings stability that decides how much extra caution to apply to the growth rate.
An officer, director, or 10%+ owner purchasing their own company's stock on the open market — disclosed to the SEC within 2 business days, price included.
What a business is actually worth, independent of what the market happens to be paying for it right now.
The gap between what you pay and what something is worth — your buffer against being wrong.
A preferred share, note, or depositary share that trades under its own ticker but reports its parent company's common-stock financials.
A smoothed 10-year earnings average used instead of a single year when earnings look unusually high or low.
The three-way read on where a stock's current price sits relative to its Payback Price and Sticker Price.
Warren Buffett's measure of true earnings — operating cash flow minus the capital needed just to maintain the business.
How many years of current earnings you're paying when you buy a share at today's price.
The price at which you are buying the business at a 50% discount to our fair value estimate — your buy target.
For every dollar reinvested in the business, how many cents does it earn back each year?
ROIC's equivalent for banks and insurers — profit as a share of the tangible equity shareholders actually put in.
Our estimate of what the company is worth today — the fair value you'd pay to earn exactly a 15% annual return.
How large a stake a tracked investor holds, as a share of that investor's own portfolio — not a rating of the stock itself.
The five growth metrics we check before ever asking what a stock is worth — EPS, book value, revenue, free cash flow, and ROIC.
A statistical method that calculates growth by considering all possible year combinations, not just first vs. last year.
24 terms