Here are the definitions for popular terms we use in our screeners and model portfolios (ordered according to abc):

**Avg. Daily Volume**– The average daily trading volume over the last month.**Beta**– 3 year Beta.**Cheapness Rank (TEV/EBIT Screener)**– A cheapness rank based on the TEV/EBIT multiple. A rank of A% indicates that the stock is cheaper than A% of stocks in the universe. A lower rank is better.**Cheapness Rank (VC2 Screener)**– A cheapness rank based on Value Composite 2 ranking system (VC2). VC2 is inspired by Jim O’Shaunnesy’s “What Works On Wall Street”. Comprised of the following valuation multiples: P/E TTM; P/FCF; P/B; EV/Sales; EV/EBIT; Shareholder’s Yield. A lower rank is better.**Current Ratio**– Calculated as Current Assets – Current Liabilities.**Debt/Equity**– Calculated as Total Debt / Book value of Equity.**EPS PTM**– Earnings Per Share during the previous TTM, excluding Extraordinary items.**EPS TTM**– Earnings Per Share during the recent TTM, excluding Extraordinary items.**EV (or TEV)**– Enterprise Value. Calculated as Market Cap + Total Debt (incl. Preferred equity) – Cash & Equivalents.**EV/ Sales**– Calculated as Enterprise Value / TTM Revenue. Enterprise Value = Market Cap + Total Debt (incl. Preferred equity) – Cash & Equivalents.**EV/EBITDA**– Calculated as Enterprise Value / TTM Earnings before Interest, Taxes, Depreciation & Amortization. Enterprise Value = Market Cap + Total Debt (incl. Preferred equity) – Cash & Equivalents.**FS_score**– Modified Piotroski F_score. The higher the better. A measure of the quality and financial stability of the company, measured from 0 to 10. Based on the work of T. Carlisle and W. Grey described in their book “Quantitative Value”.**MF Quality Rank**– Magic Formula quality rank. Sorts stocks according to their return on capital, which was defined by Joel Greenblatt as [Operating Income after Depreciation / (Net PP&A + Receivables + Inventory)]. A higher rank is better.**MF Rank**– Magic Formula Rank. Calculated as the average of the MF quality rank and the MF valuation rank. A higher is better.**MF Valuation Rank**– Magic Formula valuation rank. Sorts stocks according to their Earnings Yield, defined by Joel Greenblatt as [Operating Income after Depreciation / Enterprise Value]. A higher rank is better.**Mom. Quality Rank**– Momentum’s Quality Rank. Implements a proprietary algorithm which sorts stocks according to how consistent and monotonous their momentum behaves. A higher rank is better.**Mom. Quarter**– The momentum of the stock in the recent quarter. Calculated as the % of price change between 3 months ago and 1 month ago. The exclusion of the most recent month is due to the reversal effect in the recent month.**Mom. Year**– The momentum of the stock in the recent year. Calculated as the % of price change between 12 months ago and 1 month ago. The exclusion of the most recent month is due to the reversal effect in the recent month.**NCAV (% of MV)**– Calculated as Net Current Asset Value / Market Cap. Nat Current Asset Value = Current Assets – Total Liabilities – Preferred Equity.**NCAV %**y-o**–**py – The % change in NCAV from the previous year to today.**Net Cash (% of MV)**– Calculates Net Cash / Market Cap. Net Cash = Cash & Equivalents – Total Liabilities – Preferred Equity.**P/B**– Calculated as Market Cap / Total Equity. The measure excludes Preferred Equity.**P/E TTM**– Calculated as Market Cap / TTM Earnings before Extraordinary items.**P/FCF**– Calculated as Market Cap / (TTM Operating Cashflow – Capital Expenditures)**P/TanB**– Price to Tangible Book Value Ratio. Tangible Book Value is the book value of common equity (excl. preferred equity) minus intangible assets.**Quarter Mom Rank**– Quarterly Momentum Rank. The higher the better. Sorts the stocks according to their idiosyncratic quarterly momentum. Idiosyncratic momentum normalizes momentum relative to their beta. A momentum figure for a low beta stock will yield a higher rank than the same momentum figure for a low beta stock.- ROC 5Y Avg. – The arithmetic average of the Return on Capital during the last five TTM periods. ROC is calculated as EBIT / (Equity + Total Debt – Cash & Equivalents)
**Sh. Yield**– Shareholder’s Yield. The rate at which the company gave back capital to its shareholders, in the form of dividends, buying back equity, and reducing debt. Calculated as (Dividend paid + net equity purchased + net debt paid) / Market Cap.**TEV/EBIT**– Total Enterprise Value / Earnings Before Interest and Taxes. Enterprise Value = Market Cap + Total Debt (incl. Preferred equity) – Cash & Equivalents. EBIT equals TTM Operating Income.**TEV/EBIT Rank –**A cheapness rank based on the TEV/EBIT multiple. A rank of A% indicates that the stock is cheaper than A% of stocks in the universe. A lower rank is better.**TTM**– Trailing Twelve Months.**QV Quality Rank**– Quantitative Value Quality Rank. A rank of A% indicates that the stock has a higher quality than A% of stocks in the universe. Comprised of fundamental quality parameters such as the FS_Score, 5Y averages of Return on Assets, Return on Capital, Accruals, Gross Margin, and Gross Margin growth, as well as several technical parameters which are undisclosed. A higher rank is better.