Glossary


A
Aaa Corporate Bond Rate

The average yield on corporate bonds rated Aaa by Moody's Investors Service. Bonds that are rated Aaa are judged to be of the best quality.

Accounts Payable

Amount owed for goods and services that have been bought, and payment is due within the next 12 months. This item can be found on a company's balance sheet.

Accounts Receivable

Amount to be received for providing goods or services. Payment is due within the next 12 months. This item can be found on a company's balance sheet.

Accrued Expenses

An expense recognized in the books before it is paid for

Accumulated Depreciation

The total amount charged to reflect the aging of property, plant, and equipment owned by a company over the course of multiple accounting periods.

Action Bar

The Action Bar refers to the section of the new Company Profile that includes the Industry Rank, as well as the notifications for Alerts, Watchlists, and Notepad. The classic Value Line PDF Reports can also be accessed from the Action Bar.

Adjusted Strike Price

When there is a stock split or stock dividend, the exchanges adjust the strike prices to reflect the change. Usually, if the split is 2 for 1, the strike price is cut in half and the number of contracts in the subscribers’ account is doubled with the number of shares per contract remaining at 100. However, for some other splits, the number of shares per contract and the strike price are both changed. For example, when there is a 3-for-2 split, the exchanges can change the strike prices (e.g., from $60 to $40) and the number of shares per contract (from 100 to 150). Sometimes, when there is a spin-off, the option will be exercisable into a composite of more than one stock (and sometimes some cash).  

After-Tax Corporate Profits

See Corporate Profits.

AFUDC

A non-cash credit to income consisting of equity and debt components. This non-cash income results from construction work in progress and is expected to be converted into cash income at a future date.

Agents' Balances & Premiums Receivable

Premium related balances due from policyholders

All Dividends to Net Profits

Percentage of net profits paid out as dividends, excluding special dividends

Allowance for Funds Used During Construction (Electric Utility Industries)

A non cash credit to income consisting of equity and debt components. This non cash income results from construction work in progress and is expected to be converted into cash income at a future date.

Allowance for Funds Used During Construction as % of Net Prof

Allowance for funds used during construction (AFUDC) as a percentage of net profit

Alpha

The excess return above an asset's required rate of return. Also known as the risk-adjusted return.

American Depositary Receipts (ADRs)

Since most other nations do not allow stock certificates to leave the country, a foreign company will arrange for a trustee (typically a large bank) to issue ADRs (sometimes called American Depositary Shares, or ADSS) representing the actual, or underlying, shares. Each ADR is equivalent to a specified number of shares (the ratio is shown in a footnote on the Value Line page).

American Depository Receipts (ADRs)

A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange.

American Stock Exchange Composite

A market-capitalization weighted index of the prices of the stocks traded on the American Stock Exchange.

American-Style Option

An American-style option is exercisable at any time until expiration. All U.S. exchange traded equity options are American-style.  Options that are exercisable only at expiration are know as European-Style.  Some index options, including the SPX (S&P 500) and the NDX (NASDAQ 100) are European-Style. 

Amortization

An accounting method that reduces the value of an intangible asset on a regular basis over time

Analyst Adjusted Assets Under Management Growth over Trailing 10 Year Period

Analyst Adjusted Assets Under Management Growth over Trailing 10 Year Period

Analyst Adjusted Assets Under Management Growth over Trailing 5 Year Period

Analyst Adjusted Assets Under Management Growth over Trailing 5 Year Period

Analyst Adjusted Book Value Growth over Trailing 10 Year Period

The analyst adjusted rate of book value growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Book Value Growth over Trailing 5 Year Period

The analyst adjusted rate of book value growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Cash Flow Growth over Trailing 10 Year Period

The analyst adjusted rate of cash flow growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Cash Flow Growth over Trailing 5 Year Period

The analyst adjusted rate of cash flow growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Distributions Growth over Trailing 10 Year Period

Analyst Adjusted Distributions Growth over Trailing 10 Year Period

Analyst Adjusted Distributions Growth over Trailing 5 Year Period

Analyst Adjusted Distributions Growth over Trailing 5 Year Period

Analyst Adjusted Dividends Growth over Trailing 10 Year Period

The analyst adjusted rate of dividends growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Dividends Growth over Trailing 5 Year Period

The analyst adjusted rate of dividends growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Earnings Growth over Trailing 10 Year Period

The analyst adjusted rate of earnings growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Earnings Growth over Trailing 5 Year Period

The analyst adjusted rate of earnings growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Investment Revenue Growth over Trailing 10 Year Period

The analyst adjusted rate of investment income growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Investment Revenue Growth over Trailing 5 Year Period

The analyst adjusted rate of investment income growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Loan Income Growth over Trailing 10 Year Period

Analyst Adjusted Loan Income Growth over Trailing 10 Year Period

Analyst Adjusted Loan Income Growth over Trailing 5 Year Period

Analyst Adjusted Loan Income Growth over Trailing 5 Year Period

Analyst Adjusted Loans Growth over Trailing 10 Year Period

The analyst adjusted rate of loans growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Loans Growth over Trailing 5 Year Period

The analyst adjusted rate of loans growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Mortgage Loans Growth over Trailing 10 Year Period

The analyst adjusted rate of mortgage loans growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Mortgage Loans Growth over Trailing 5 Year Period

The analyst adjusted rate of mortgage loans growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Net Operating Revenues Growth over Trailing 10 Year Period

The analyst adjusted rate of net operating revenues growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Net Operating Revenues Growth over Trailing 5 Year Period

The analyst adjusted rate of net operating revenues growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Net Revenue Growth over Trailing 10 Year Period

Analyst Adjusted Net Revenue Growth over Trailing 10 Year Period

Analyst Adjusted Net Revenue Growth over Trailing 5 Year Period

Analyst Adjusted Net Revenue Growth over Trailing 5 Year Period

Analyst Adjusted Premium Income Growth over Trailing 10 Year Period

The analyst adjusted rate of premium income growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Premium Income Growth over Trailing 5 Year Period

The analyst adjusted rate of premium income growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Projected Assets Under Management Growth over 3-5 Year Period

Analyst Adjusted Projected Assets Under Management Growth over 3-5 Year Period

Analyst Adjusted Projected Book Value Growth over 3-5 Year Period

The analyst adjusted projected rate of book value growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Cash Flow Growth over 3-5 Year Period

The analyst adjusted projected rate of cash flow growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Distributions Growth over 3-5 Year Period

Analyst Adjusted Projected Distributions Growth over 3-5 Year Period

Analyst Adjusted Projected Dividends Growth over 3-5 Year Period

The analyst adjusted projected rate of dividends growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Earnings Growth over 3-5 Year Period

The analyst adjusted projected rate of earnings growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Investment Revenue Growth over 3-5 Year Period

The analyst adjusted projected rate of investment income growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Loan Income Growth over 3-5 Year Period

Analyst Adjusted Projected Loan Income Growth over 3-5 Year Period

Analyst Adjusted Projected Loans Growth over 3-5 Year Period

The analyst adjusted projected rate of loans growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Mortgage Loans Growth over 3-5 Year Period

The analyst adjusted projected rate of mortgage loans growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Net Operating Revenues Growth over 3-5 Year Period

The analyst adjusted projected rate of net operating revenues growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Net Revenue Growth over 3-5 Year Period

Analyst Adjusted Projected Net Revenue Growth over 3-5 Year Period

Analyst Adjusted Projected Premium Income Growth over 3-5 Year Period

The analyst adjusted projected rate of premium income growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Revenues Growth over 3-5 Year Period

The analyst adjusted projected rate of revenues growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Sales Growth over 3-5 Year Period

Projected rate of sales growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Savings Deposits Growth over 3-5 Year Period

The analyst adjusted projected rate of savings deposits growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Total Assets Growth over 3-5 Year Period

Projected rate of total assets growth over 3-5 years as of latest fiscal year

Analyst Adjusted Projected Total Revenue Growth over 3-5 Year Period

Analyst Adjusted Projected Total Revenue Growth over 3-5 Year Period

Analyst Adjusted Revenues Growth over Trailing 10 Year Period

The analyst adjusted rate of revenues growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Revenues Growth over Trailing 5 Year Period

The analyst adjusted rate of revenues growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Sales Growth over Trailing 10 Year Period

Rate of sales growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Sales Growth over Trailing 5 Year Period

Rate of sales growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Savings Deposits Growth over Trailing 10 Year Period

The analyst adjusted rate of savings deposits growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Savings Deposits Growth over Trailing 5 Year Period

The analyst adjusted rate of savings deposits growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Total Assets Growth over Trailing 10 Year Period

Rate of total assets growth over trailing 10 years as of latest fiscal year

Analyst Adjusted Total Assets Growth over Trailing 5 Year Period

Rate of total assets growth over trailing 5 years as of latest fiscal year

Analyst Adjusted Total Revenue Growth over Trailing 10 Year Period

Analyst Adjusted Total Revenue Growth over Trailing 10 Year Period

Analyst Adjusted Total Revenue Growth over Trailing 5 Year Period

Analyst Adjusted Total Revenue Growth over Trailing 5 Year Period

Analyst's Commentary

An approximate 350-word report on each company in Ratings & Reports that discusses recent developments, and evaluates a company's prospects and its corresponding stock.

Analyst’s Commentary

An approximate 350-word report on each company page in Ratings & Reports on recent developments and prospects issued every three months on a preset schedule.

Annual Change D-J Ind

Annual change for the Dow Jones Industrial Average for a given year

Annual Change D-J Industrials (Investment Companies)

The annual change from year end to year end in the Dow Jones Industrial Average, expressed as a percentage.

Annual Change in NAV

Annual percentage change in a fund's net asset value for a given year

Annual Change in Net Asset Value (Investment Companies)

The change in percentage terms of the net asset value per share at the end of any given year from what it was at the end of the preceding year, adjusted for any capital gains distributions made during the year.

Annual Rates of Change (Per Share)

Compound yearly rates of change of per-share sales, cash flow, earnings, dividends, and book value, or other industry-specific, per-share figures, over the past 10 years and five years and estimated for the coming three to five years. Historical rates of change are computed from the average figures for a past three-year period to the most recent actual three-year period. Forecasted rates of change are computed from the average figure for the most recent three-year period to an average for a future three-year period. If data for a three-year period are not available, a two- or one-year base may be used.

Annual Total Return

A compound yearly return to shareholders that includes both stock price appreciation and dividend returns.

Annual Total Return Projection

The expected percentage gain (capital appreciation plus dividends) that an investor would achieve per year by purchasing and holding a particular stock.

Annuity

A form of contract sold by life insurance companies that guarantees a fixed or variable payment at some future time.

App

A computer program or piece of software that is designed to fulfill a particular purpose. App is short for Application.


Appreciation Potential

The percentage difference between the recent stock price and the mid point of the 3- 5-year Target Price Range.

Arithmetic Average

Items to be averaged are added and their sum is divided by the number of items. The result is an arithmetic, or simple, average (or mean).

Ask Price

This is the price at which the market is willing to sell the option. The ask price (also known as the “offer” price) is always higher than the bid price, which is the price at which the market maker will buy the option. 

Asset Quality (Bank and Thrift Industries)

An indicator of problem loans and other assets relative to total assets. A bank with good asset quality, for example, has a lower percentage of problem loans than the average bank.

Asset Value per share

The total common equity, with securities valued at market, rather than cost, divided by the number of shares outstanding.

Asset Value Per Share Year End (Investment Companies)

The total common equity at year end, with securities valued at market, rather than cost, divided by the number of shares outstanding at year end.

Assets

For a corporation, the total of current assets (normally cash and short-term investments, inventories, and receivables) and long-term assets (normally including property and equipment and good will).

Assets Under Management ($Bil)

The market value of assets that an investment company oversees on behalf of its clients.

Assets Under Management ($Mil)

The market value of assets that an investment company oversees on behalf of its clients.

Assets Under Management per share

The market value of assets that an investment company oversees on behalf of its clients, on a per share basis.

Assets Under Management per unit

The market value of assets that an investment company oversees on behalf of its clients, on a per unit basis.

Assets Year End (Investment Companies)

Total investment company assets at market value, including stocks, bonds, government securities, and cash, at year end.

Assignment

Notice to an option writer that the option has been exercised. See “Automatic Exercise.”

 

At-the-Market

This means at the prevailing bid (if a seller or a writer) or offer (if a buyer) price.  

At-the-Money

The striking price of an option equals the market price of the underlying stock or index price. 

Automatic Exercise

All exchange-traded options held by retail investors are automatically exercised at expiration if they are so much as $0.01 in-the-money.

Available Seat Miles (ASM) (Air Transport Industry)

A measure of the airline seating capacity available for sale. Each ASM is one seat flown one mile.

Average Annual Dividend Yield

Dividends declared per share for a year divided by the average annual price of the stock in the same year, expressed as a percentage.

Average Annual P/E Ratio

The average price of the stock for the year divided by earnings per share (excluding nonrecurring items, as determined by Value Line) reported by the company for the year. In the case of fiscal-year companies, all data are for the fiscal year. (See also Price/Earnings ratio.)

Average Annual PE ratio

Is calculated by dividing the average price for a year with the actual reported earnings for that year and is shown in the Statistical Array.

Average Annual Price Earnings (PE) Ratio

The average price of the stock for the year divided by earnings per share (excluding nonrecurring items, as determined by Value Line) reported by the company for the year. In the case of fiscal-year companies, all data are for the fiscal year. (See also Price/Earnings ratio.) 

Average Annual Price/FFO Ratio

Average annual price divided by funds from operations (FFO) for REITs

Average Annual Relative P/E Ratio

Average fiscal P/E of the stock relative to the median P/E of all stocks under Value Line's review

Average Basic Shares

The average of all common shares outstanding.

Average Diluted Shares

The average of all common shares outstanding, including securities that could be converted into common stock.

Average Industrial Revenues per Kilowatt Hour

The average annual industrial revenues per kilowatt hour (KWH) - in cents, includes two decimal places, for Electric Utilities as stated in the Electric Operating Statistics

Average Industrial Use

The average annual industrial use, per megawatt hour (MWH), for Electric Utilities as stated in the Electric Operating Statistics

Average Interest Paid

Average interest paid

Average Interest Rate Paid (Financial Services Industries)

The interest paid during the year divided by the average debt outstanding.

Average Price for the Year

The sum of the 52 Tuesday closing prices for the year divided by 52.

Average Trading Volume Last 2 Weeks

Average trading volume for the last 2 weeks.

Average Trading Volume Last 3 Months

Average trading volume for the last 3 months.

Average Trading Volume Last 6 Months

Average trading volume for the last 6 months.

Average Trading Volume Last Month

Average trading volume for the last 30 days.

Average Trading Volume Last Year

Average trading volume for the last year

Average Yield Next 12 Months of All Dividend Paying Stocks in the 3500 Stock Universe

Average estimated yield for the next 12 months of all dividend paying stocks in the 3500 stock universe