Metric glossary

EPS growth (FWD) %

The analysts' consensus estimate of EPS growth over the next twelve months. It is the growth half of the PEG ratio.

Why it matters. Forward EPS growth links valuation to growth. Earnings that keep speeding up can compound returns even if the share price stands still.

How to read it.

• Strong: 20% or more with a P/E under 25, typically an attractive entry
• Accelerating: FWD higher than TTM means the trajectory is improving
• Watch: high FWD estimates that do not fit recent margin trends
• Azqato target: above 15%

EPS growth (latest quarter, YoY) %

EPS is earnings per share: the company's total profit divided by the number of shares. This metric is the change in earnings in the latest reported quarter versus the same quarter a year earlier.

Why it matters. Revenue shows growth; EPS shows whether the business gets more efficient as it grows. Strong EPS growth alongside healthy revenue growth means costs are growing slower than sales (operating leverage).

How to read it.

• Strong: above 15%, especially alongside healthy revenue growth
• Watch: revenue growing fast while EPS is flat or falling (shrinking margins or heavy reinvestment)
• Red flag: EPS falling while revenue grows

Free cash flow growth (1 year) %

Latest fiscal year versus the year before.

Revenue growth (3-year CAGR) %

Compound annual revenue growth over 3 years.

Revenue growth (FWD) %

The analysts' average (consensus) estimate of revenue growth in the company's next fiscal year.

Why it matters. Forward estimates show which way the market expects growth to go. When FWD is above TTM, growth is speeding up; when it is below, the business is maturing or meeting headwinds.

How to read it.

• FWD above TTM: growth is accelerating
• Strong FWD and strong TTM: a high-conviction setup
• Strong FWD but weak TTM: execution risk; check it against management's guidance
• FWD below TTM: the business is slowing
• Azqato target: above 15%; caution below 8%

Revenue growth (latest quarter, YoY) %

Revenue is all the money a company brings in from selling its products or services, before any costs are subtracted. This metric compares the latest reported quarter with the same quarter a year earlier (year over year), which is what Yahoo's revenue growth measures.

Why it matters. It reflects results the company actually reported, not forecasts. Strong growth shows real customer spending; growth slowing across several quarters in a row shows demand cooling. One quarter moves more than a full year, so a single strong or weak quarter can swing it.

How to read it.

• Strong: above 15% for growth companies, especially if it is rising
• Watch: below 10% while forward expectations are high; the gap between results and estimates is a risk
• Red flag: revenue growth falling across consecutive quarters

Dividend yield %

The yearly dividend per share divided by the share price. It shows how much cash the company pays out each year for every dollar invested at today's price.

EV / EBITDA x

Enterprise value (market cap plus debt, minus cash) divided by earnings before interest, taxes, depreciation, and amortization. It compares companies with different amounts of debt; lower means cheaper for the earnings.

Forward P/E to EPS growth x

Forward P/E divided by forward EPS growth, the same calculation as PEG (FWD). A value below 1 means the P/E is below the growth rate.

Why it matters. Azqato's primary valuation signal is a P/E below the forward EPS growth rate: growth is outpacing the multiple you pay.

How to read it.

• Below 1: P/E is below the growth rate, the Azqato target
• Above 1: the market is paying more than the growth rate; check the reasons

See PEG (FWD) for the full reading guide

Free cash flow yield %

Trailing 12-month free cash flow divided by market cap.

P/E (FWD) x

The share price divided by the expected earnings per share for the next twelve months. A $110 stock expected to earn $5 has a P/E of 22: you pay $22 for each dollar of next year's profit.

Why it matters. It is the main valuation anchor, but it means little on its own. A P/E of 30 on 40% earnings growth is very different from a P/E of 10 on flat earnings.

How to read it.

• Primary signal: P/E below the forward EPS growth rate (growth outpaces the multiple)
• Secondary signal: P/E below the sector median and the company's 5-year average
• Watch: P/E above the EPS growth rate; the market expects more acceleration than the estimates show
• Expensive: P/E well above growth, the sector median, and the 5-year average

Pair it with EPS growth (FWD), or use Forward P/E to EPS growth or PEG (FWD)

P/E (TTM) x

Price divided by trailing 12-month diluted EPS.

P/S (TTM) x

Market cap divided by trailing 12-month revenue.

PEG (FWD) x

Forward P/E divided by the forward EPS growth rate. It adjusts the price you pay for how fast earnings are expected to grow.

Why it matters. Azqato calls PEG FWD the single most important number in its method. It explains why a P/E of 25 can be a better buy than a P/E of 10. A negative PEG (from negative earnings or falling growth) is not cheap, even though the number is low.

How to read it.

• Below 1.0: possibly undervalued for its growth; the highest-conviction entry zone
• 1.0 to 2.0: fairly valued to a slight premium; acceptable for businesses with a durable moat
• Above 2.0: growth is already priced in; needs strong conviction that estimates will be beaten
• Above 3.0: the market is pricing in very aggressive growth; high downside if estimates disappoint

Gross margin %

Revenue minus the cost of goods sold, as a percentage of revenue: the share of each sales dollar left after making the product or delivering the service.

Why it matters. Gross margin shows the quality of the business model; more of each dollar is left for running the business and for profit. The direction matters: rising margins signal pricing power, falling ones competition.

How to read it.

• 50% or more: strong; typical of software, brands, and platforms (Azqato target)
• 30% to 50%: moderate; depends on scale and operating leverage
• Under 30%: higher risk; low-margin businesses are exposed to rising costs (Azqato caution)
• Falling over time: a red flag at any level

Net margin %

Net income as a percentage of revenue, after every cost, expense, interest payment, and tax.

Why it matters. It shows whether the business builds wealth as it grows. Rising net margins show operating leverage; falling ones mean costs are growing faster than revenue.

How to read it.

• 30% or more: elite; very few businesses sustain it
• 25% to 30%: excellent; strong pricing power and cost control (Azqato target: above 25%)
• 10% to 25%: good; profitable and scaling, depending on sector and direction
• Under 10%: needs context; not bad in itself, but little room for error (Azqato caution)
• Negative: acceptable only early in growth, with a credible path to profit

Operating margin %

Operating income as a percentage of revenue: what is left after the costs of making the product and running the business, before interest and taxes.

Return on equity %

Return on equity: net income divided by shareholders' equity. It shows how much profit the company makes with the money its owners have put in and left in the business.

Cash to debt x

Cash and equivalents divided by total debt. Above 1 means more cash than debt.

Why it matters. It puts Azqato's cash-versus-debt test in one number: whether the company could repay its borrowing from the cash it holds today.

How to read it.

• Above 1: net cash positive, the Azqato target
• 0.33 to 1: debt is 1 to 3 times cash; review rates, maturities, and cash flow
• Below 0.33: debt is more than 3 times cash, the Azqato caution

See Total cash and Total debt

Current ratio x

Current assets divided by current liabilities.

Debt to equity x

Total debt divided by shareholders' equity. Higher means the company relies more on borrowed money; below 0.5 is generally conservative.

Net cash to market cap %

Total cash minus total debt, divided by market cap. Positive means the company holds more cash than debt.

Why it matters. It shows how much of the company's value is backed by net cash, and how much debt weighs on it.

How to read it.

• Positive: net cash; the most balance-sheet freedom
• Near zero: cash and debt roughly balanced
• Strongly negative: debt heavy relative to the company's size

See Total cash and Total debt

Total cash $

Cash, cash equivalents, and short-term liquid investments on the balance sheet.

Why it matters. Cash is a cushion and an option. It lets a company fund growth without issuing shares, buy competitors in a downturn, keep investing in research when others cut back, and survive shocks without expensive borrowing.

How to read it.

• Net cash positive: more cash than debt; the most balance-sheet freedom (Azqato target)
• Cash neutral: cash and debt about equal; manageable if free cash flow is strong
• Debt heavy: debt well above cash; look closely at its terms and whether the company can service it

Total debt $

All short-term and long-term borrowing: bonds, loans, credit lines, and other interest-bearing liabilities.

Why it matters. Debt amplifies everything, both upside and downside. The question is whether the debt is manageable for the company's earning power; free cash flow against the debt decides the real risk.

How to read it.

• Debt below cash: the company could repay all its debt with the cash it holds
• Debt 1 to 3 times cash: look deeper at interest rates, maturities, and cash flow coverage
• Debt above 3 times cash: high scrutiny; check that cash flow would hold up in a downturn (Azqato caution)

Market cap $

In US dollars, for example 10000000000 for $10B.

Daily change %

Change from the previous close.

Share price $

Latest close, in US dollars.

Position in 52-week range %

Where today's price sits between the lowest and highest prices of the last 52 weeks: 0% is the low, 100% the high.

Why it matters. Like RSI, it times index and ETF purchases. An index near its 52-week low reflects market-wide pessimism, not a problem inside every company.

How to read it.

• Lower 25% of the range: a high-priority window; pessimism may be overdone
• 25% to 50%: a reasonable time to add
• 50% to 85%: be careful adding extra; a better price may come
• 85% or higher (near the 52-week high): not the time to add extra money

Price versus 100-day average %

How far today's price is above or below its average close over the last 100 trading days, as a percentage. Negative means below the average.

Price versus 20-day average %

How far today's price is above or below its average close over the last 20 trading days, as a percentage. Negative means below the average.

Price versus 200-day average %

Negative means below the 200-day average.

RSI (14-day)

A number from 0 to 100, from the last 14 trading days, comparing the average size of recent up days with recent down days.

Why it matters. Azqato uses RSI to time index and ETF purchases, not to pick stocks. It shows when broad fear or greed has pushed prices to an extreme: a window to add money, not a prediction.

How to read it.

• Above 70: overbought; the index rose sharply; wait for a pullback
• 45 to 70: neutral to mild momentum; watch, but do not chase
• 30 to 45: approaching oversold; a good window to add to index positions
• Below 30: strongly oversold; broad fear is high; the best window to add money

Assets under management $

In US dollars.

Expense ratio %

Yearly fund cost.

Fund yield %

The fund's yearly income distributions divided by its price: the cash the fund pays out for every dollar invested at today's price.

Return (1 year) %

Total return.

Return (10 years) %

Total return.

Return (5 years) %

Total return.

Return (year to date) %

Total return.