Glosario de inversión

Asset Turnover

Asset turnover measures how efficiently a company generates revenue from its asset base. Reveals operational efficiency stripped of margins.

Basic Earning Power (BEP)

A profitability ratio equal to operating income (EBIT) divided by total assets. Measures raw earning ability before taxes and leverage.

Cash Flow Additivity Principle

The rule that cash flows or their present values can only be added together when they occur at the same point in time. A foundation of time-value-of-money math.

Current Ratio

Current ratio measures short-term liquidity by comparing current assets to current liabilities. The first liquidity test for any business.

Debt-to-Equity Ratio

Debt-to-equity measures financial leverage by comparing total debt to shareholder equity. The headline measure of capital structure risk.

Distributable Earnings

A non-GAAP measure of the cash earnings a company has available to pay out, used heavily by alternative asset managers and business development companies.

Dividend Yield

Dividend Yield measures cash returned to shareholders relative to share price. Learn how to read it without falling for the high-yield trap.

Earnings Power Value (EPV)

A valuation that capitalizes a company's current sustainable earnings with no growth assumed. Popularized by Bruce Greenwald as a conservative anchor.

Earnings Yield

Earnings yield is the inverse of PE, expressing valuation as a percentage. The cleanest way to compare stocks against bonds.

EBIT

EBIT measures operating earnings before interest and taxes. The cleanest measure of pure business operating performance.

EBITDA

EBITDA strips out interest, taxes, depreciation, and amortization to show operating earnings power. Useful and frequently misused.

EV/EBITDA Ratio Explained

EV/EBITDA values the entire business against operating cash earnings, ignoring capital structure. Learn how it works and when it beats PE.

EV/FCF Ratio

EV/FCF values the entire business against the actual cash it generates. The most honest valuation multiple in finance.

EV/Revenue Ratio

EV/Revenue values the whole business against its top line. Useful when earnings are negative, dangerous when margins differ.

Forward PE Ratio Explained

Forward PE values a stock against next year's expected earnings. Learn when it sharpens your view, when it deceives, and how ACCE uses it.

Free Cash Flow

Free cash flow is the actual cash a business generates after paying for operations and growth. The hardest line item to fake.

Free Cash Flow (FCF) Yield

FCF yield measures the actual cash a company generates relative to its market value: the cleanest valuation metric and the hardest to fake.

Gross Margin

Gross margin measures profitability after direct costs of production. The first and cleanest signal of business model quality.

Interest Coverage Ratio

Interest coverage measures a company's ability to service its debt from operating earnings. The most direct measure of debt sustainability.

Inventory Turnover

Inventory turnover measures how quickly a company sells through its inventory. Critical for retail and manufacturing efficiency.

Negative Enterprise Value

When a company's cash exceeds its market cap plus debt, so its enterprise value is below zero. The market implies the operating business is worth less than nothing.

Net Debt

Net debt measures actual debt burden after subtracting cash. The honest measure of balance sheet leverage.

Net Margin

Net margin measures bottom-line profitability after all expenses, interest, and taxes. What's actually left for shareholders.

Operating Cash Flow

Operating cash flow shows the cash a business generates from core operations. The denominator before capex turns it into free cash flow.

Operating Income

Operating income is the profit from core business operations before interest and taxes. Effectively the same as EBIT.

Operating Margin

Operating margin measures core business profitability after all operating expenses. The most direct measure of operational efficiency.

PEG Ratio Explained

The PEG ratio adjusts PE for growth, putting cheap-but-stagnant and expensive-but-growing stocks on equal footing. Learn how to use it well.

Price-to-Book (P/B) Ratio Explained

The P/B ratio compares market value to accounting equity. Useful for banks and asset-heavy businesses, misleading for everything else.

Price-to-Earnings (PE) Ratio Explained

The PE ratio tells you how much you're paying for $1 of a company's earnings. Learn how to use it, when it lies, and ACCE's take.

Price-to-Sales (P/S) Ratio Explained

The P/S ratio values a company against its revenue, useful when earnings are negative or unreliable. Learn when it works and when it lies.

Quick Ratio

Quick ratio measures liquidity using only cash and receivables, excluding inventory. A more conservative liquidity test than current ratio.

Return on Assets (ROA)

ROA measures how efficiently a company generates profit from its asset base. Strips out leverage to show pure operational efficiency.

Return on Equity (ROE)

ROE measures how efficiently a company generates profit from shareholder equity. The headline quality metric used by professional investors.

Return on Invested Capital (ROIC)

ROIC measures returns on all capital deployed in the business. The most rigorous quality metric and the foundation of value creation.

Static PE vs Dynamic PE

Static PE uses last full-year earnings, dynamic PE uses forecast or annualized earnings. Common terms in Asian markets that map to trailing and forward PE.

Temporary Equity (Mezzanine Equity)

Instruments shown between liabilities and permanent equity on the balance sheet, such as redeemable preferred stock whose redemption is not solely in the company's control.

Trailing PE Ratio (PE-TTM)

A company's share price divided by its earnings per share over the trailing twelve months. Also called PE-TTM, it values a stock on actual past earnings.

Trailing Twelve Months (TTM)

The sum of a company's financials over the most recent four quarters. A rolling one-year window that updates every quarter, used for revenue, EPS, and EBITDA.

Working Capital

Working capital measures the operational liquidity tied up in day-to-day business operations. A key indicator of operational efficiency.

Annual Recurring Revenue (ARR)

ARR measures the annualized value of recurring subscription revenue. The headline growth metric for SaaS businesses.

Backlog

Backlog measures contracted future revenue not yet recognized. The visibility metric for project-based and long-cycle businesses.

Bookings

Bookings measure total contract value signed in a period. The forward-looking demand metric that precedes revenue.

Customer Acquisition Cost (CAC)

CAC measures the average cost to acquire a new customer. Critical for evaluating subscription and consumer business unit economics.

Deferred Revenue

Deferred revenue measures cash collected for services not yet delivered. A balance sheet liability that signals subscription business health.

Earnings Growth

Earnings growth measures how fast bottom-line profit is expanding. The metric stocks ultimately follow over the long run.

Earnings Response Coefficient (ERC)

A measure of how strongly a stock's price reacts to an earnings surprise. A higher ERC means the market treats the company's earnings as more informative.

EPS Growth

EPS growth measures earnings per share expansion, combining net income growth with share count changes. What shareholders ultimately receive.

Free Cash Flow Growth

FCF growth measures how fast actual cash generation is expanding. The cleanest measure of underlying business value creation.

Gross Merchandise Value (GMV)

GMV measures total transaction value flowing through a marketplace. The headline scale metric for platform businesses.

LTV/CAC Ratio

LTV/CAC measures whether the customer lifetime value justifies acquisition cost. The fundamental unit economics of subscription businesses.

Market Share

Market share measures a company's revenue as a percentage of total industry revenue. The cleanest signal of competitive position.

Monthly Recurring Revenue (MRR)

MRR measures monthly subscription revenue at a point in time. The high-frequency version of ARR for granular SaaS tracking.

Net Retention Rate (NRR)

NRR measures revenue from existing customers including expansion and churn. The single most important metric in B2B SaaS.

Operating Leverage

Operating leverage measures how much profit grows for each dollar of revenue growth. The mechanism that turns growth into compounding wealth.

Penetration Rate

Penetration rate measures how much of a target market actually uses a product. The growth runway indicator for new categories.

Revenue Growth

Revenue growth measures how fast a company's top line is expanding. The most fundamental signal of business momentum and the foundation of every growth thesis.

Same-Store Sales

Same-store sales measure growth from existing stores, stripping out new openings. The cleanest signal of underlying retail health.

Standardized Unexpected Earnings (SUE)

An earnings surprise measured in standard deviations, used to rank how far actual earnings beat or missed forecasts. The engine behind post-earnings drift.

Take Rate

Take rate measures the percentage of transaction value a marketplace captures. The fundamental economics of platform businesses.

TAM, SAM, SOM

TAM, SAM, and SOM measure addressable market size at decreasing levels of specificity. The framework for sizing growth opportunity.

User Growth

User growth measures how fast the customer base is expanding. The leading indicator of revenue growth for consumer and platform businesses.

Bull Market and Bear Market

Bull markets are sustained price uptrends; bear markets are sustained downtrends of 20% or more. The fundamental cycle framework for equity investing.

Consumer Price Index (CPI)

CPI measures the average price change for consumer goods and services. The headline inflation gauge that drives Fed policy and asset prices.

Credit Spreads

Credit spreads measure the extra yield corporate bonds pay over Treasuries. The cleanest signal of credit risk and recession probability.

Dollar Index (DXY)

The DXY measures the US dollar against a basket of major currencies. The currency benchmark that affects every global asset class.

Fed Funds Rate

The federal funds rate is the Fed's primary policy tool, setting the price of overnight money. The single most influential interest rate on earth.

Federal Reserve

The Federal Reserve sets US monetary policy and influences global asset prices. The single most important institution for any investor to understand.

GDP

GDP measures the total output of an economy. The fundamental measure of economic activity that everything else flows from.

GDP Growth

GDP growth measures the percentage change in economic output. The headline rate that defines whether the economy is expanding or contracting.

ISM Manufacturing Index

The ISM measures manufacturing activity. The most-watched leading indicator for industrial economy and broader cyclical trends.

M2 Money Supply

M2 measures the broad money supply including cash, deposits, and money market funds. The macro indicator for liquidity conditions.

Market Correction

A correction is a 10-20% decline from recent highs. Less severe than a bear market but the most common form of equity volatility.

Nonfarm Payrolls (NFP)

Nonfarm payrolls measure monthly job creation outside agriculture. The most-watched single economic data point in the world.

Personal Consumption Expenditures (PCE)

PCE is the Fed's preferred inflation measure. Methodologically different from CPI but the more important number for Fed policy.

PMI

PMI measures business activity through purchasing manager surveys. The leading indicator framework used globally to track economic momentum.

Producer Price Index (PPI)

PPI measures price changes received by US producers. The leading indicator of inflation that flows through to consumer prices.

Quantitative Easing (QE)

QE is the Fed's bond-buying program designed to lower long-term rates and ease financial conditions. The defining monetary tool of the post-2008 era.

Quantitative Tightening

QT is the Fed's process of shrinking its balance sheet by allowing bonds to mature. The reverse of QE that withdraws liquidity from markets.

Recession

A recession is a significant decline in economic activity lasting more than a few months. The macro event that reshapes asset prices.

Soft Landing vs Hard Landing

A soft landing means the Fed cools inflation without recession; a hard landing means recession follows. The defining macro question of every cycle.

Treasury Yields

Treasury yields are the interest rates on US government debt across maturities. The risk-free benchmark for global financial pricing.

Unemployment Rate

The unemployment rate measures the percentage of the labor force without jobs. The headline labor market indicator that drives Fed policy and recession calls.

VIX

The VIX measures expected S&P 500 volatility over the next 30 days. The fear gauge that signals market stress and contrarian opportunity.

Yield Compression

When the yield on an asset falls, which by definition means its price has risen. Common in bonds, dividend stocks, and real estate cap rates.

Yield Curve

The yield curve plots Treasury yields across maturities. The shape signals where the economy and rates are heading.

Yield Curve Inversion

Yield curve inversion occurs when short-term yields exceed long-term yields. Historically the most reliable recession predictor.

Accretion and Dilution

Accretive means an action raises a per-share metric like EPS or margin. Dilutive means it lowers it. The test used to judge acquisitions, buybacks, and issuance.

Active vs Passive Investing

Active investing tries to beat the market through stock picking and timing; passive aims to match market returns. The defining debate of modern investing.

Asset Allocation

Asset allocation is the division of a portfolio across asset classes. The single most important investment decision determining long-term returns and risk.

Buy and Hold

Buy and hold means owning quality investments through full market cycles without trying to time entries and exits. The strategy that beats most active investors.

Clientele Effect

The idea that a company's dividend and payout policy attracts a specific type of investor, so changing the policy drives that clientele away.

Compounding

Compounding is exponential growth from reinvested returns earning their own returns. The mathematical force Einstein called the eighth wonder of the world.

Contrarian Investing

Contrarian investing means betting against consensus. The strategy that profits from buying when others are fearful and selling when others are greedy.

Denominator Effect

When a fall in public asset values automatically pushes a portfolio's private-asset allocation above target, because the private values have not been marked down yet.

Dividend Growth Investing

Dividend growth investing focuses on companies that consistently raise their payouts. The compounding strategy for income-focused long-term wealth.

Dividend Reinvestment Plans (DRIP)

DRIP automatically reinvests dividends into additional shares. The compounding strategy that builds wealth through reinvested income.

Dollar Cost Averaging (DCA)

DCA means investing fixed amounts at regular intervals regardless of price. The behavioral strategy that protects against timing risk and emotional mistakes.

Equity Kicker

An equity stake, warrant, or conversion right added to a debt or preferred deal, giving the lender upside if the company does well.

Factor Investing

Factor investing systematically targets specific characteristics like value, momentum, quality, and size. The academic-backed approach to enhanced returns.

Growth at a Reasonable Price (GARP)

GARP combines growth and value, seeking growing companies at reasonable valuations. Peter Lynch's strategy that beat the market for two decades.

Growth Investing

Growth investing focuses on companies expanding revenue and earnings rapidly. The strategy that captures the largest absolute returns when it works.

Index Investing

Index investing means owning the entire market through low-cost funds. The strategy that beats most active investors over long periods.

Long/Short Investing

Long/short investing combines long positions with short positions to profit in any market environment. The hedge fund strategy that aims for absolute returns.

Lump Sum Investing

Lump sum investing means deploying capital all at once rather than gradually. Statistically superior to DCA but psychologically harder.

Margin of Safety

Margin of safety means buying stocks at significant discount to estimated intrinsic value. The Graham principle that protects against analytical errors.

Momentum Investing

Momentum investing means buying recent winners and selling recent losers. The factor with the strongest historical evidence and the worst behavioral feel.

Pair Trading

Pair trading goes long one stock and short a related stock to profit from relative performance. The market-neutral strategy used by hedge funds.

Quality Investing

Quality investing focuses on businesses with high returns on capital, strong moats, and durable competitive advantages. The Buffett-Munger approach.

Rebalancing

Rebalancing means restoring portfolio allocations to their targets. The mechanical contrarian strategy that maintains discipline and improves returns.

Sector Rotation

Sector rotation moves investments between sectors based on economic cycle phase. The strategy that aligns positioning with macroeconomic conditions.

Smart Beta

Smart beta combines passive indexing with rules-based factor tilts. The middle ground between traditional indexing and active management.

Special Dividend

A one-time cash payment to shareholders, separate from the regular dividend, usually funded by excess cash, an asset sale, or an unusually strong year.

Tax-Loss Harvesting

Tax-loss harvesting means selling losing positions to offset gains for tax benefits. The strategy that adds 0.5-2% annually to after-tax returns.

Value Investing

Value investing means buying stocks trading below their intrinsic worth. The Buffett-Graham approach that built more long-term wealth than any other strategy.

Direct Listing

A direct listing puts existing private shares on public exchanges without raising new capital. The alternative IPO method that bypasses underwriters.

Dividend

A dividend is a cash payment from a company to its shareholders. The most direct way companies share profits with owners.

Hostile Takeover

A hostile takeover is acquiring a company despite board opposition. The aggressive M&A approach that drives major corporate transformations.

Initial Public Offering (IPO)

An IPO is when a private company first sells shares to the public. The capital event that creates new public companies and investment opportunities.

Mergers and Acquisitions (M&A)

M&A is when companies combine through purchase or merger. The corporate transformation that creates and destroys massive shareholder value.

Poison Pill

A poison pill is the corporate defense that makes hostile takeovers prohibitively expensive. The most powerful tool in the takeover defense arsenal.

Reverse Stock Split

A reverse split combines existing shares into fewer shares at higher price. Often a warning sign of struggling companies trying to stay listed.

Share Buyback

A share buyback is when a company repurchases its own stock from the market. The capital return mechanism that often beats dividends.

Special Purpose Acquisition Company (SPAC)

A SPAC is a shell company created to merge with a private company. The IPO alternative that produced spectacular gains and devastating losses.

Spin-off

A spin-off creates new independent company from existing business unit. The corporate structure transformation that often unlocks shareholder value.

Stock Split

A stock split divides existing shares into multiple shares, lowering price per share without changing total value. Cosmetic but psychologically powerful.

Tender Offer

A tender offer is a public bid to buy shares directly from shareholders. The acquisition mechanism that bypasses board negotiations.

Four-Wall EBITDA

Store-level or location-level EBITDA that counts only revenue and costs inside a single unit, before corporate overhead. A unit-economics measure for retail and restaurants.

Funded vs Unfunded Backlog

Funded backlog is contract work with money already appropriated and obligated. Unfunded backlog is awarded work not yet funded. A key distinction in defense contracting.