Learn the lingo you’ll find in our various applications.
Adjusted PEG (Price/Earnings To Growth) Ratio Rating
Typically, a PEG ratio is the ratio used to determine a stock’s value while taking into account earnings growth.
Peg Ratio is the Price to Earnings ratio ÷ Annual EPS Growth
The adjusted PEG ratio rating reflects proprietary adjustments made by our algorithm. We then compare that adjusted PEG ratio to all of the stocks in our database to give it a rating. The lower the PEG ratio, the higher the rating (a percentile) assigned. If the rating is high, the better the stock is performing compared to the others in our database and may be undervalued given its earnings performance. (SFTW Investor)
We rank companies within their industries; the lower the ranking, the better this stock is compared to its industry peers. (SFTW Investor)
EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization
An indicator of a company’s financial performance which is calculated in the following EBITDA calculation: EBITDA = Revenue – Expenses (excluding tax, interest,depreciation and amortization) EBITDA is essentially net income with interest, taxes, depreciation, and amortization added back to it, and can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.
This score is similar to the safety score, but for the company’s industry. Again, the higher the industry rating, the more likely you are buying a stock at a price attractive for long term investment. (SFTW Investor)
The total dollar market value of all of a company’s outstanding shares. Market capitalization is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determine a company’s size, as opposed to sales or total asset figures. Frequently referred to as “market cap.”
Stocks that are overvalued have a lower Safety Score and are currently priced higher than what we estimate their actual value to be. (SFTW Investor)
Price-To-Sales Ratio – Price/Sales
A ratio for valuing a stock relative to its own past performance, other companies or the market itself. Price to sales is calculated by dividing a stock’s current price by its revenue per share for the trailing 12 months.
Push Button Portfolio
Our Push Button Portfolios are curated lists of stocks based on certain themes and criteria – popular stocks, diversified stocks, etc. Updated daily, you can use these portfolios to create a new watchlist of stocks to watch, or you can add the stocks in these portfolios to an existing watchlist. (SFTW Investor)
SFTW Trader provides a list of automated daily recommend stocks for short-term investors. These recommendations are selected using pattern recognition of the market technical variables (open, high, low, close, volume) to identify sectors/industries/stocks poised for short term growth.
SFTW Investor assigns a proprietary “safety score” rating for stocks, sectors, and industries. We evaluate the fundamental factors (balance sheet, income statement) and then rank the stock, sector, or industry by percentile (1 to 99); a higher safety score indicates a stock/sector/industry like undervalued. (SFTW Investor)
Stocks that are undervalued have a high Safety Score, but are currently priced lower than what we estimate their actual value to be. (SFTW Investor)
Total Enterprise Value
Total Enterprise Value is the market value of the stock equity plus long term debt, subtracted from cash on the balance sheet. (SFTW Investor)
Keep track of stocks important to you by adding them to a watchlist, which allows you to quickly access stock information the next time you log into the app. (SFTW Investor, SFTW Trader)