Glossary of terms used in FundSpec

FundSpec, 8 September 2026

Definitions of the terms that appear on FundSpec's screens, in the sense FundSpec uses them.

Adjusted close. The closing price adjusted for splits and dividends so that a price series is comparable across time. Technical indicators and returns are computed on adjusted closes.

ADX (average directional index). A measure of trend strength on a scale from zero to one hundred, without regard to direction. The positive and negative directional indicators show which side is in control.

Aggressor. The side that initiated an options trade, buyer or seller, inferred from where the trade executed relative to the bid and ask.

Analyst rating. A covering firm's summary view of a stock in that firm's own scale. FundSpec groups the scales into bullish, neutral and bearish.

Aroon. An indicator measuring how recently the highest high and the lowest low occurred within a window, used to judge whether a trend is young or old.

Beta. How much a stock moves for a given move in the market, measured against SPY. A beta of one moves with the market; above one moves more.

Chaikin money flow (CMF). A volume weighted measure of buying and selling pressure based on where each close fell within its day's range.

Consensus estimate. The average of covering analysts' forecasts for a company's earnings per share or revenue in a period.

Conviction tier. FundSpec's ranking of an unusual options print, Notable, High Conviction or Whale, combining premium size, size relative to open interest, sweep execution and fill quality.

Correlation. How closely a stock's daily returns follow the market's, measured against SPY, from minus one to one.

Discounted cash flow (DCF). A valuation that projects a company's future cash flows and discounts them to a present value at a rate reflecting their risk.

Drawdown. The fall from a peak to the subsequent trough. Maximum drawdown over a year is the largest such fall in that period.

Earnings surprise. The reported earnings figure minus the consensus estimate, usually as a percentage of the estimate.

EBITDA. Earnings before interest, taxes, depreciation and amortisation; operating profit before non cash charges.

Enterprise value (EV). Market value of the equity plus debt and minority interests minus cash and investments; the value of the whole business.

Exit multiple. A valuation multiple applied to the final projected year of a DCF to estimate the value of all later years.

Fair value. FundSpec's estimate of what a company would be worth if the market priced its fundamentals the way it prices comparable companies, blending an industry peer estimate with a market wide model.

Fair value range. The band around the fair value estimate, calibrated on history so that the price has typically fallen inside it.

Free cash flow. Cash from operations minus capital expenditure. Free cash flow to equity is what remains for shareholders after debt service; free cash flow to the firm is before debt.

FundSpec rating. The label on the gap between fair value and price: Significantly Undervalued, Undervalued, Fairly Valued, Overvalued or Significantly Overvalued; Not Rated when the data is insufficient.

GARP. Growth at a reasonable price, a screen for companies growing faster than average without trading at a growth premium.

Implied upside. The distance from the current price to the median analyst price target, as a percentage.

MACD. The difference between two exponential moving averages, compared with its own average, the signal line, to mark changes in momentum.

Momentum. FundSpec's description of a stock's recent price trend, Bullish, Bearish or Neutral, with a confidence reflecting how established the trend is. It describes recent price behaviour and is not a forecast.

Moving average. The mean closing price over a fixed number of sessions. A simple average weights every session equally; an exponential average weights recent sessions more.

Net premium. Bullish options premium minus bearish options premium across the day's tracked unusual prints.

Open interest. The number of options contracts outstanding in a given contract. A print larger than open interest is new positioning.

Percentile rank. Where a value stands against every US stock, from zero to one hundred; a percentile of seventy five is better than three quarters of the market for that metric.

Pivot points. Support and resistance levels derived from the previous session's high, low and close.

Premium. The money behind an options trade: contracts multiplied by the option price and the contract multiplier.

Price target. The price an analyst expects a stock to reach over a stated horizon, usually twelve months, if their thesis holds.

Print. A single executed trade. In FundSpec, usually a single executed options trade.

Profit factor. Total gains divided by total losses across a model's closed trades. Above one means the model has made money in aggregate.

Put to call ratio. Put premium divided by call premium across the day's tracked unusual prints.

Reinforcement learning. A way of training a model by letting it act in an environment and rewarding the outcomes; FundSpec's trading models are trained by trading a simulated replay of a ticker's history.

Relative strength index (RSI). An oscillator comparing recent gains with recent losses on a scale from zero to one hundred.

Relative value. What a company would be worth at its peers' typical valuation multiples. FundSpec shows it at the sector and industry widths.

Reverse DCF. A DCF run backwards from the current price to find the growth rate the market is implying.

SIC code. The Standard Industrial Classification code a company reports in its SEC filings; FundSpec builds sectors, industries and peer groups from it.

Stochastic oscillator. An indicator placing the latest close within the recent high to low range.

Sweep. An options order split across several exchanges to fill immediately, read as urgent.

Terminal value. The value in a DCF of every year beyond the projection period.

Trader profile. The FundSpec setting that chooses the horizon momentum reads: Conservative for the long trend, Balanced for the two to four week swing, Aggressive for the current week's move.

TTM. Trailing twelve months; a figure summed over the last four reported quarters.

Unusual options activity. Options trades whose size, premium or execution stand out from the normal activity in their contract.

Verified call. A published model call that has been checked against the prices that followed and recorded with its outcome.

WACC. Weighted average cost of capital; the blended cost of a company's equity and after tax debt, used to discount firm cash flows.

Warranted value. The value a model assigns to a company from its fundamentals, before comparing it with the market price.

Whale. The largest unusual options prints of a session, by premium or by conviction score.

William %R. An oscillator placing the latest close within the recent range, expressed from zero to minus one hundred.

Win rate. The share of a model's closed trades that ended in a gain.