Sunday, 8 November 2026 Weekly snapshot · Not investment advice standard-equity.report

Glossary

Plain-English definitions for every metric that appears in a Standard Equity report.

Organised by category — click any metric for the full definition, formula, and a note on why it matters.

Terms: 78 Categories: 15

For how the metrics are computed and where the data comes from, see the methodology.

Part 1

Income Statement

7 terms

Revenue	Total sales the company generated over the reporting period.
Revenue Growth	Year-over-year percentage change in revenue.
Gross Profit	Revenue minus the direct cost of producing what was sold.
Operating Profit	Profit from core operations before interest and taxes (EBIT).
EBITDA	Earnings before interest, taxes, depreciation, and amortization.
Net Income	Bottom-line profit after every expense, including interest and taxes.
Net Investment Result (Holding companies)	A holding company's top line: income and fair-value gains on its investments.

Part 2

Margins

5 terms

Gross Margin	Gross profit as a percentage of revenue.
Operating Margin	Operating profit as a percentage of revenue.
Net Margin	Net income as a percentage of revenue.
Pretax Margin (Banks)	Pretax income as a percentage of revenue. Used for banks.
FCF Margin	Free cash flow as a percentage of revenue.

EPS — Earnings Per Share (Diluted)	Net income divided by diluted shares outstanding.
EPS Growth	Year-over-year percentage change in diluted EPS.
Book Value Per Share	Total equity divided by diluted shares outstanding.
Tangible Book Value Per Share (Banks)	Book value excluding goodwill and intangibles, per share.
FCF Per Share	Free cash flow divided by diluted shares outstanding.
DPS — Dividends Per Share	Total dividends paid per share over the period.
Revenue Per Share	Revenue divided by diluted shares outstanding.

Part 4

Returns

4 terms

ROIC — Return on Invested Capital	After-tax operating profit divided by total invested capital.
ROE — Return on Equity	Net income divided by total equity.
ROA — Return on Assets	Net income divided by total assets.
ROTE — Return on Tangible Equity (Banks)	Net income divided by tangible equity. Bank-specific.

Part 5

Growth

1 term

NII Growth (Banks)

Year-over-year change in Net Interest Income. Bank-specific.

Part 6

Valuation

12 terms

P/E — Price-to-Earnings Ratio	Stock price divided by earnings per share.
EV/EBIT	Enterprise value divided by operating profit.
P/TBV — Price to Tangible Book Value (Banks)	Stock price divided by tangible book value per share. Bank-specific.
P/B — Price to Book Ratio	Market cap divided by total equity.
EV/EBITDA	Enterprise value divided by EBITDA.
P/FCF — Price to Free Cash Flow	Market cap divided by free cash flow.
Enterprise Value	What it would cost to buy the entire business: market cap plus debt, minus cash.
Market Capitalization	Total market value of the company's equity.
Reference Value (Expected Value)	The probability-weighted average of our simulated DCF values, shown beside the median and the base case.
SE Grade (stars)	0–3 stars for how good and durable the business is. The price moves it one notch at most; the rank only lowers it.
Reference Range (central 50%)	The range holding the middle 50% of our simulated values (25th to 75th percentile). Model-implied, not yet calibrated.
What the Price Assumes	The growth, margin and year-10 revenue the current price needs, set against judgement base rates.

Part 7

Yield

3 terms

Dividend Yield	Annual dividends per share as a percentage of stock price.
FCF Yield	Free cash flow as a percentage of market cap.
Earnings Yield	EPS as a percentage of stock price. Inverse of P/E.

Part 8

Capital Allocation

3 terms

Payout Ratio	Dividends per share as a percentage of EPS.
Buyback Yield	Year-over-year percentage change in shares outstanding (negative = buybacks).
Shares Outstanding (Diluted)	Total diluted share count.

Part 9

Cash Flow

4 terms

FCF — Free Cash Flow	Operating cash flow minus capital expenditure.
Capital Expenditure (CapEx)	Cash spent on property, plant, and equipment.
Operating Cash Flow	Cash generated from core business operations.
FCF-to-Net-Income Ratio	Free cash flow divided by net income — a quality-of-earnings indicator.

Part 10

Balance Sheet

4 terms

Debt-to-Equity Ratio	Total debt divided by total equity.
Long-Term Debt	Debt obligations due more than 12 months out.
Net Debt	Total debt minus cash and equivalents.
Interest Coverage (EBIT/Interest)	Operating profit divided by interest expense.

Part 11

Banks

5 terms

NIM — Net Interest Margin (Banks)	Net interest income as a percentage of average interest-earning assets.
Loan yld — Loan Yield (Banks)	Net interest income as a percentage of average loans.
NII — Net Interest Income (Banks)	Interest revenue minus interest expense. Core bank revenue.
Efficiency Ratio (Banks)	Non-interest expense as a percentage of revenue before loan losses. Lower is better.
Equity-to-Assets Ratio (Banks)	Total equity as a percentage of total assets. Bank capital adequacy.

Part 12

Insurance

5 terms

Combined Ratio (Insurance)	Claims, underwriting costs and expenses as a percentage of premiums. Below 100% is an underwriting profit.
Benefit Ratio (Insurance)	Policy benefits and claims as a percentage of premiums.
Premium Growth (Insurance)	Year-on-year growth in premiums earned.
Investment Yield (Insurance)	Investment income as a percentage of average invested assets.
Book Value per Share Growth (Insurance, Holding companies)	Year-on-year growth in book value per share.

Part 13

REITs

4 terms

FFO per Share — Funds From Operations (REITs)	A REIT's earnings per share before real-estate depreciation and property-sale gains.
FFO Growth (REITs)	Year-over-year percentage change in FFO per share.
P/FFO — Price-to-FFO (REITs)	Stock price divided by FFO per share.
FFO Payout Ratio (REITs)	Dividends per share as a percentage of FFO per share.

Part 14

Breakdown Tables

10 terms

Driver (Profit, Revenue, Growth)	The first bottom table: which parts of the business drive profit or revenue, or how its main lines are growing.
Revenue by region, Revenue mix and Asset mix	The second bottom table: where revenue comes from, else what it is made of.
Reinvestment returns and Financing	The third bottom table: how much of its earnings the company reinvests, and what that earns.
Reinvestment Rate and Retention Rate	The share of earnings put back into the business instead of paid out.
Return on Capital	The profit each unit of capital in use earns, as a median over the window.
Spread over hurdle / Cost of Equity	Return on capital minus the discount rate the fair value uses.
Rel growth	How fast a Driver row grew against the company's total revenue: 1.00x is in line.
Rel margin	A segment's margin against the margin of the profit-making segments together: 1.00x is the group's own.
Top 3 coverage	How much of the total the three rows shown add up to, in the column heading.
Trend	Small bars, one per fiscal year, drawn like the main table's trend bars.

Part 15

Analyst & Spread

4 terms

Consensus Price	Low, mean, median, and high price targets from sell-side analysts.
Estimate Spread	How tight the range around an estimate is. Shown as 0–3 dots: more dots, a tighter spread.
Blended Consensus	An estimate from two or three analysts, mixed with our own trend in proportion to the analyst count; a lone analyst is not counted.
Data Coverage Indicator	Visual flag (○) when a metric uses partial or limited historical data.

At a glance

Terms	78
Categories	15