Aportia Docs

Glossary

TermDefinition
BetaStatistical measure of an asset's price sensitivity relative to the overall market
CAGRCompound Annual Growth Rate — the annualised rate of growth over a multi-year period
CAPMCapital Asset Pricing Model — used to calculate the required rate of return given risk
DCFDiscounted Cash Flow — valuation model based on the present value of future cash flows
DDMDividend Discount Model — valuation model based on the present value of future dividends (Gordon model)
EPSEarnings Per Share — net income divided by shares outstanding
ERPEquity Risk Premium — the historical excess return of equities over risk-free assets
EBITDAEarnings Before Interest, Taxes, Depreciation & Amortisation
FCFFree Cash Flow — operating cash flow minus capital expenditure
FFOFunds From Operations — the preferred earnings metric for REITs
Gordon Fair PriceIntrinsic value calculated by the Gordon Growth Model (DDM)
MACDMoving Average Convergence/Divergence — momentum indicator
Max Buy PriceFair Price × (1 − Margin of Safety) — the highest price at which the asset offers sufficient value
P/BPrice-to-Book — market price relative to net asset value per share
P/EPrice-to-Earnings — how much investors pay per dollar of earnings
PEGPrice/Earnings-to-Growth — P/E adjusted for the growth rate
P/SPrice-to-Sales — market capitalisation relative to annual revenue
REITReal Estate Investment Trust — a company that owns income-producing real estate
ROAReturn on Assets — net income as a percentage of total assets
ROEReturn on Equity — net income as a percentage of shareholders' equity
RSIRelative Strength Index — momentum oscillator ranging from 0 to 100
SMASimple Moving Average — arithmetic mean of closing prices over a given period
Spread (k − g)The difference between the discount rate and the growth rate in the Gordon model; must be ≥ 2%
VerdictAportia's final asset rating: STRONG BUY, BUY, HOLD, EXPENSIVE, or AVOID