Glossary
Definitions of the financial, valuation and dossier terms used across Capopedia.
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Core valuation
Intrinsic value
Our estimate of what the business is worth per share today, the median of multiple independent valuation methods computed from company filings and market data. A headline value is published only when enough methods produce reliable values (specialised company types use designed method sets). Updates with new filings.
Margin of safety
How far the intrinsic value sits above (positive) or below (negative) the market price, always versus our estimate. The classic value-investing cushion between the price paid and the estimated worth of the business.
Valuation verdict
The plain-language reading of that gap: Significantly undervalued, Undervalued, Near fair value (within about 15% of our estimate), Overvalued, or Significantly overvalued (beyond about 50%). The data-confidence grade sits alongside it, so you always know how much weight the verdict can bear.
Median of methods
We take the middle value of all methods that produced a result, rather than an average, so a single extreme method cannot drag the answer.
DCF (discounted cash flow)
Projects the company’s cash generation over a long horizon under our growth framework and discounts it to today’s value, including the value of the years beyond the projection.
DNI (discounted net income)
The same long-horizon discounting applied to earnings instead of cash flow, a second, independent read on earning power.
P/E-implied value (price-to-earnings)
Current earnings priced at the company’s own historical valuation norms, what the stock would be worth if the market valued it as it historically has. Where a company lacks usable multiple history, a peer-group norm may be used and is labelled as such.
P/S-implied value (price-to-sales)
As above, using revenue and the company’s own historical sales-multiple norms.
P/B-implied value (price-to-book)
As above, using book equity and the company’s own historical book-multiple norms.
PEG value (price/earnings-to-growth)
Values the company at a fair multiple proportionate to its expected growth, dividend-adjusted for payers.
P/FFO (price to funds from operations; REITs)
Real-estate trusts are valued on funds from operations times the trust’s 5-year average P/FFO multiple, the standard REIT lens; the six standard methods do not apply.
Terminal value
The value of all cash flows beyond the projection horizon, assumed to grow at a conservative perpetual rate and discounted back to today.
Growth schedule
Analyst estimates
Forecasts published by professional analysts who follow a company, such as growth expectations and price targets. Coverage varies widely: large companies may be followed by dozens of analysts, while smaller or recently listed companies often have few or none.
Years 1–5: near-term growth
From analyst consensus estimates across their published horizons; the near-term path reflects the street’s latest view.
Years 6–20: long-term growth
Transitions gradually from analyst-anchored growth toward the company’s own demonstrated record and then a conservative long-run rate, with caps applied to keep assumptions grounded.
Terminal growth
The perpetual growth rate beyond the projection horizon, a conservative figure, always below the risk-free rate, reviewed periodically.
Historical EPS growth (earnings per share)
The company’s demonstrated earnings growth, measured over multiple multi-year windows so a single unusual year cannot distort it.
Capped / no earnings history
Where growth caps bind, the display notes it. Companies with no earnings history rely on analyst forecasts alone, with caps applied, and carry Low data confidence.
Discount rate
Discount rate (cost of equity)
The annual return investors require for holding the stock: risk-free rate plus the equity risk premium scaled by the company’s adjusted beta.
Risk-free rate
The 10-year US Treasury yield, taken at each run from FRED (Federal Reserve Economic Data, the St. Louis Fed’s public database) and dated.
Equity risk premium
The extra return equities demand over government bonds, a market-based estimate, reviewed periodically.
Adjusted beta
The stock’s volatility versus the market, moderated to avoid extreme discount rates from noisy readings.
Data quality and provenance
Data confidence
A grade (High / Medium / Low / Insufficient) of how complete and consistent the underlying data is for this company, it grades the inputs, not our conviction about the stock. Independent valuation models agree with ours most often exactly where this grade is highest.
Method not shown
When a method lacks the data to compute honestly, it abstains and the panel says why in plain language ("Loss-making, earnings methods not applicable"). We never force a number.
Headline value withheld
For a small set of companies we don’t yet publish a headline intrinsic value because our data-reliability standards for a headline figure weren’t met. The six-method panel still shows, with each method’s status in plain language, and the company page and financials remain in full.
AI-assisted narrative
The written sections (thesis, monitoring, overview and similar) are research drafts prepared with large language models from the cited public sources, refreshed on a documented schedule. Every number on the site comes from a mechanical pipeline reading company filings and market data, never from AI.
Sources
Each written section lists the public documents it draws on, filings, call transcripts, investor pages, news. The count shows for all visitors; the links are available to registered users.
TTM
Trailing twelve months, the four most recent reported quarters. Financial figures are dated by their period end ("TTM through Jun 28, 2026"), not by when we retrieved them.
Price as of
Market-priced items (price, market cap, margin of safety) carry their own quote date and refresh daily; fundamentals refresh with company filings and are dated by period end.
Sources
Every figure traces to a source family: SEC filing (with form and fiscal year), Analyst consensus, Market data, Screener data, FRED, Peer group (computed), or Computed by Capopedia.
Company quality displays
Moat
Our durability-of-advantage rating, Wide, Narrow, or None, based on the persistence of returns on invested capital versus the cost of capital. Not applicable to banks, insurers, REITs and pre-profit companies, where the framework doesn’t fit.
Six pillars
Sector-relative quality grades, High / Medium / Low against sector peers across our full coverage: Members see each pillar’s precise sector rank.
- Predictability: How steady the company’s growth has been over time.
- Profitability: How much profit the business earns from its sales and its capital.
- Growth: The company’s expected growth alongside its demonstrated record.
- Financial strength: The resilience of the balance sheet and the company’s ability to weather stress.
- Valuation: How the market price compares with our intrinsic value.
- Dividend: The income record: yield, consistency and growth, among sector payers.
Radar
The six pillar grades drawn as spokes. A missing spoke means insufficient data, never a zero; the dividend spoke ranks payers only, so non-payers show a gap.
Dividend chips
Yield (from the latest reported figure, or derived from last year’s dividends where unreported, labelled), streak (consecutive observed years; "12+" means our records begin inside a paying run), and 5-year dividend growth. A chip appears only when its data exists.
Peer group
The eight companies closest in size within the same industry code (minimum three); where an industry is too small, the broader industry family is used and labelled. Peer comparisons use the median across the group.
Street view
Street consensus
The aggregated view of professional analysts covering the stock, shown as positive/neutral/negative, their opinion, not ours. The low and high are the single most bearish and most bullish analyst targets, not averages.
Bull / base / bear cases
Analyst scenario price targets for the next 12 months with rough probabilities. These forecast where the PRICE may go in a year; our intrinsic value estimates what the BUSINESS is worth today, different questions, so they can legitimately disagree.
Your assumptions (sandbox)
Your intrinsic value
The result of the same six-method engine under assumptions you set, growth, discount rate, multiples, shares. Recomputed live as the median of the same methods, and always labelled as yours, not Capopedia’s. The sandbox appears only for companies valued with a growth schedule; specialised tracks (REITs, financials, pre-profit companies) don’t use one, so no sandbox is shown there.
Scenario
A saved set of your assumptions for a company (one per company).
Dashboard metrics
Gross margin
Revenue minus the direct cost of producing it, as a share of revenue, what the product itself earns before operating costs.
Operating margin
Operating income as a share of revenue, profitability after running the business, before interest and tax.
Net margin
Net income as a share of revenue, what ultimately accrues to shareholders from each dollar of sales.
ROE / ROA
Return on equity (net income over shareholders’ equity) and return on assets (net income over total assets), how productively the capital base is used.
ROIC (return on invested capital)
After-tax operating profit over invested capital, the engine behind the moat rating: sustained ROIC above the cost of capital is what a durable advantage looks like.
Capex intensity
Capital expenditure as a share of revenue, how asset-hungry growth is.
Altman Z-score
A bankruptcy-risk composite; higher is safer.
Piotroski F-score
A 0–9 checklist of fundamental health; higher is stronger.
FCF margin
Free cash flow as a share of revenue.
Rule of 40
Revenue growth plus profit margin, a software-sector health check.
Net debt / EBITDA
Years of core earnings needed to repay net debt; lower is safer. EBITDA: earnings before interest, tax, depreciation and amortisation.
Interest coverage
Operating income over interest expense.
Shareholder yield
Dividends plus net buybacks as a share of market value.
YoY
Year over year, a comparison with the same period one year earlier.
CAGR
Compound annual growth rate, the smoothed yearly growth rate over a multi-year period.
Earnings-beat rate
The share of recent quarters where reported earnings beat analyst estimates.