Glossary of Terms

Beta: A measure of a stock's volatility in relation to the overall market.

Book Value: The net asset value of a company, calculated by subtracting total liabilities from total assets.

Capital Expenditure (CapEx): Funds used by a company to acquire, upgrade, or maintain physical assets such as property, buildings, or equipment.

Debt-to-Equity Ratio: A ratio that indicates the relative proportion of a company's debt to its shareholders' equity.

Dividend Yield: The dividend per share, divided by the price per share, representing the return on investment for a stock based on its dividend payments.

Dividends: A portion of a company's earnings that is paid out to shareholders, usually in cash or additional stock.

EBITDA Margin: Shows a company's operating profit as a percentage of its revenue, often used to compare profitability between companies.

Earnings Before Interest and Taxes (EBIT): A measure of a company's profitability that excludes interest and income tax expenses.

Earnings Growth Rate: The rate at which a company’s earnings are increasing or decreasing over a period.

Earnings Per Share (EPS): A portion of a company's profit allocated to each outstanding share of common stock.

Free Cash Flow (FCF): The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Institutional Investors: Large organizations like banks and hedge funds that invest large sums of money into financial markets.

Liquidity: The ability of a company to quickly convert assets into cash without losing value.

Market Capitalization (Market Cap): The total market value of a company’s outstanding shares of stock. It represents the market's view of a company’s total worth.

Net Income: The total profit a company has after subtracting all of its expenses.

Operating Cash Flow (OCF): The cash generated by a company’s regular business operations.

Operating Margin: A profitability ratio that shows what percentage of a company’s revenue is left after paying for variable costs of production.

Price-to-Book (P/B) Ratio: A financial ratio that compares a company's market value to its book value.

Price-to-Earnings (P/E) Ratio: A financial metric that compares a company’s share price to its earnings per share (EPS).

Price-to-Sales (P/S) Ratio: A financial metric that compares a company's stock price to its revenues.

Return on Equity (ROE): A measure of financial performance, showing how efficiently a company is using its equity to generate profits.

Revenue: The total income generated by a company from its sales of goods or services before any expenses are deducted.

Revenue Growth: The increase in a company's sales over a specific period.

Short Interest: The total number of shares that have been sold short but have not yet been covered or closed out.

Stock Buyback (Share Repurchase): When a company buys back its own shares from the marketplace, reducing the number of outstanding shares.

Trailing Price/Earnings to Growth (PEG) Ratio: A stock’s price-to-earnings (P/E) ratio divided by the growth rate of its earnings.

Volatility: A statistical measure of the dispersion of returns for a given security or market index.

Yield Curve: A graph that plots the interest rates of bonds having equal credit quality but different maturity dates.