FICO Fair Isaac Corporation

Capital-structure-agnostic valuation multiple. Useful for comparing levered companies because it adds debt and removes cash from the numerator and uses pre-interest, pre-tax, pre-depreciation earnings in the denominator.

Valuation expressed against the cash actually available to all capital providers. Often more honest than EV/EBITDA when capex is meaningful relative to D&A.

Adjusts the numerator for debt and cash so heavily-levered or cash-rich companies are comparable. Particularly useful for cross-industry valuation work.

Capital-structure-agnostic earnings yield. Pairs with Greenblatt ROC to compute the Magic Formula rank (the universe-rank of EY plus universe-rank of ROC). Pre-tax operating earnings divided by the full claim on the firm.

Multiple of trailing-twelve-month earnings the market has assigned to the company. Lower means cheaper relative to current earnings power, but a single low P/E can also mean the market expects earnings to fall.

Useful when earnings are negative or noisy (early-stage companies, restructurings). Works best within an industry because gross margin profiles vary wildly.

FCF the business throws off relative to what you pay for the equity. Treats the equity as a perpetual claim on cash. Cyclicals can swing below zero in a downturn.

First-line profitability measure - how much revenue is left after the direct cost of producing it. Stable gross margin suggests pricing power and low input-cost exposure.

Strips out receivables and inventory, leaving only cash and equivalents over current liabilities. Stress-tests whether the business can meet obligations even if collections seize up.

Whether the company can cover near-term obligations from near-term assets. Below 1.0 doesn't mean insolvent (cash flow can cover the gap) but is worth a closer look.

Useful complement to debt-to-equity. Banks, REITs, and post-buyback firms can have small or negative book equity, which makes D/E unstable; D/A stays well-behaved because the denominator is always positive. Industry context still matters - utilities run higher than software.

Bond covenants are commonly written against this ratio. Above ~5x is high-yield territory; investment-grade industrials typically run below 3x. Negative net debt (more cash than debt) means the firm could pay off its bonds and still hold cash.

Earnings-quality flag. Receivables growing faster than revenue is one of the cleanest tells for revenue recognition stretching. Beneish-style.

Lets you compare equity earning power directly to bond yields. A 6% earnings yield is the equity-side analog to a 6% coupon, with the difference being earnings can grow (or contract).

Buys oversold pullbacks within an established uptrend (price above the 200-day SMA). Holds while RSI(2) is below an exit threshold; exits when RSI(2) crosses above 60.

+1 when price is above regime_ma and RSI(2) drops below oversold; held while inside the trade; back to 0 when RSI(2) crosses above exit.

+1 = pullback-buy state active, 0 = flat. Bear-side variant uses the symmetric short rule.

Reports whether the close sits within the configured proximity (default 2%) of the rolling 252-bar high or low. New-highs and new-lows are universally used screening filters; momentum and breakout strategies start from here.

+1 while close is within proximity of the 252-bar high; -1 while close is within proximity of the 252-bar low; 0 mid-range.

+1 = near 52-week high, -1 = near 52-week low, 0 = mid-range.