Here’s a glossary of acronyms used by investors. I’ll add to the list as I go, and explain each term in more depth later on. In the meantime this should give you enough to go on, so you can do a proper Google search on the term.
- 10 Bagger – This is a term coined by famous fund manager Peter Lynch, and finds it’s roots in the game of marbles, in which a 10 bagger was a marble that had won 10 games (hence had been put back in the bag of marbles 10 times, and not lost as ante to the opponent. In investing terms, a 10 bagger is a stock that has increased in value by a multiple of 10.
- ARR – Annual Recurring Revenue. This is company revenue derived from a repeating source. Typically a subscription from customers which is renewed at regular intervals.
- ATH – All Time High: the highest price a stock has ever reached.
- Black Swan – An unexpected thing or event that causes misfortune, such as COVID19, which caused an economic crash.
- CAGR – Compound Annual Growth Rate.
- Capitalized Cost – Instead of recording the total value of a purchased asset, the cost of it’s amortized value is recorded over a period of years instead.
- CARR – Contracted Annual Recurring Revenue. This is company revenue derived from a repeating (contracted) source. Typically a subscription from customers contracted over X years.
- COGS – Cost Of Goods Sold.
- CR – Capital Raise.
- DCA – Dollar Cost Averaging. Buying more shares at a different value to have an average cost per share instead of an absolute cost.
- DCF – Discounted Cash Flow. A method used to value a business.
- DPS – Dividend Per Share.
- DRP – Dividend Reinvestment Plan.
- Earnings Accreditive – An overall increase in profit, typically from an event or transaction (such as the purchase of a new business unit).
- EBIT – Earnings Before Interest and Tax.
- EBITDA – Earnings Before Interest, Tax, Depreciation and Amortization.
- EPS – Earnings Per Share.
- ETF – Exchange Traded Fund.
- EV – Enterprise Value.
- FMCG – Fast Moving Consumer Goods.
- Helicopter Money – The idea of throwing money out of a helicopter (not literally) to stimulate an economy by increasing capacity for demand.
- NPAT – Net Profit After Tax.
- NPV – Net Present Value.
- NTA – Net Tangible Assets.
- PE – Price to Earnings ratio.
- PEG – Price to Earnings Growth ratio.
- PCP – Prior Comparable Period.
- PIE – Portfolio Investment Entity.
- QE – Quantitative Easing.
- ROCE – Return On Capital Employed.
- ROI – Return On Investment.
- SP – Share Price.
- SPP – Share Purchase Plan.
- WACC – Weighted Average Cost of Capital.
