Yieldlex

Weighted Average Cost of Capital. The average interest rate a company pays to finance itself.

Earnings Before Interest, Taxes, Depreciation, and Amortization. A proxy for raw operating cash flow.

The actual cash a company generates after spending money to maintain its asset base.

The portion of a company's profit allocated to each share.

The percentage of revenue retained after direct costs of goods sold (COGS).

A measure of a company's short-term liquidity.

Price-to-Earnings. How much you pay for $1 of earnings.

P/E Ratio adjusted for Growth. Helps find 'Growth at a Reasonable Price' (GARP).

The Enterprise Value divided by EBITDA. The standard valuation metric for M&A.

Market value vs Net Asset Value.

Measures risk-adjusted performance.

The excess return of an investment relative to the return of a benchmark index.

A measure of volatility relative to the market.

How two assets move together (-1 to +1).

Borrowing shares to sell them now, hoping to buy them back cheaper later.

The difference between the highest price a buyer offers (Bid) and lowest price a seller accepts (Ask).

Market Order: Buy immediately at any price. Limit Order: Buy only at a specific price or better.

Borrowed money used to purchase securities.

A contract giving the right (but not obligation) to BUY a stock at a set price.

A contract giving the right (but not obligation) to SELL a stock at a set price.

The pre-agreed price at which the option can be exercised.

The rate at which prices rise. Erodes the purchasing power of cash.

The base interest rate set by the Central Bank.

A line plotting yields of bonds having equal credit quality but differing maturity dates.

Central banks printing money to buy assets, injecting liquidity into the economy.

The total value of goods and services produced in a country over a period.

The percentage of the labor force that is jobless and actively seeking work.

A survey-based indicator of manufacturing and services sector health.

Valuation method that projects future cash flows and discounts them to present value.

The value of a business beyond the explicit forecast period in a DCF.

Valuing a company by comparing it to similar publicly traded companies.

Valuing a company based on what similar companies sold for in M&A deals.

Valuing each business segment separately and adding them together.

The total value of assets minus liabilities, divided by shares outstanding.

The smoothed annualized growth rate over a period.

Like Sharpe Ratio but only penalizes downside volatility.

The largest peak-to-trough decline in portfolio value.

Risk-adjusted return using beta instead of total volatility.

Active return divided by tracking error vs benchmark.

The maximum loss expected over a given time period at a confidence level.

Investing a fixed amount at regular intervals regardless of price.

Buying stocks trading below their intrinsic value with a margin of safety.

Buying stocks with above-average growth potential, often at premium valuations.

Buying assets that have been rising, selling those falling.

Passive strategy that tracks a market index like the S&P 500.

Targeting specific drivers of return: value, momentum, quality, size, low volatility.

The annual interest payment as a percentage of the bond's face value.

The total return expected if the bond is held until maturity.

A measure of a bond's sensitivity to interest rate changes.

The yield difference between a corporate bond and a government bond of same maturity.

Bonds rated BBB-/Baa3 or higher by major rating agencies.

Bonds rated below investment grade (BB+/Ba1 or lower).