Buy Target - an estimate of the stock price per share that you, as an investor, should be willing to pay. The Buy Target is based on a combination of estimates derived from discounted earnings per share (intrinsic value) and the historic value derived from the historic results of the company. A company’s intrinsic value is calculated by projecting current earnings forward 10 years and discounting the forward earnings back to the present using the current 10 year Treasury Note rate of interest adjusted by the quality of the company. The historic value is calculated from the 10 year history of prices relative to revenues, cash flow, earnings, dividends, and book value and projecting the ratios forward to derive an estimate for a current estimated Buy Target.

Current Book Value - is the weighted average of the latest two years of book value per share and the projected book value for the year ahead.

Current Earnings per Share - is the weighted average of the latest two years of earnings per share and the projected earnings for the year ahead

Current P/E - is the latest price per share divided by current earnings (as defined above).

Debt v Current Assets - is a comparison of the total debt of a company divided by total current assets.

Dividend Coverage - is calculated by dividing the current earnings per share (as defined below) by the current dividend.

Dividend Yield - the current dividend (latest quarterly dividend times four) divided by the latest price per share expressed as a percentage.

Earnings/Book Value - is calculated for each company by dividing current earnings per share by the current book value per share.

Earnings Stability - a measure of earnings per share performance during the past 10 years. Each year when earnings are up less than 10% are penalized on a sliding scale with the largest earnings declines and declines in recent years penalized by the highest amounts (same as Penalty).

Growth Rate - is calculated from the 5 to 10 year historic growth rates and the 5 year growth projections for revenues, cash flow, earnings, dividends, and book value.

Growth Rating – see Owl Growth Rating.

IBD – abbreviation for Investor’s Business Daily.

Investor’s Business Daily (IBD) Earnings Acceleration Rating – compares a company’s last two quarters and the last 3 to 5 years of growth and stability with those of all other companies on a scale of 1 to 99.

Owl Growth Rating – a measure of (1) the historic growth of revenues, cash flow, earnings, dividends, and book value; (2) the risk adjusted acceleration of revenues and earnings; and (3) the forecast growth for revenues, cash flow, earnings, dividends, and book value calibrated on a scale of 0 to 5.00.

Owl Quality Rating – a measure of (1) the financial strength of the company’s balance sheet; (2) the risk and volatility of the company’s stock; and (3) the stability and consistency of earnings and dividends calibrated on a scale of 0 to 5.00.

Owl Technical Outlook Rating - a measure of appreciation potential derived from the leading rating services such as Value Line, Standard & Poor’s, and Zacks calibrated on a scale of 0 to 5.00.

Owl Total Rating – the unweighted total of The Benjamin Graham Common Stock Digest’s ratings for Quality, Value, Growth and Technical Outlook on a scale of 0 to 10.00.

Owl Value Rating – a measure of (1) a comparison of the current price/earnings, price/cash flow, and price/book value to the historic norms for the company; (2) a comparison of the growth rate for the company (as defined above) to the current price/cash flow and price/earnings of the company; and (3) a comparison of the latest price of the stock to the Buy and Sell Targets (as defined above) calibrated on a scale of 0 to 5.00.

Penalty – a measure of earnings per share performance during the past 10 years. Penalties are assessed for each year that earnings are up less than 10% on a sliding scale with the largest earnings declines and declines in recent years penalized by the highest amounts.

P/E Ratio – is the latest price per share divided by current earnings (as defined above).

P/BV Ratio – is the latest price per share divided by current book value (as defined above).

Quality Rating – see Owl Quality Rating.

S&P – abbreviation for Standard & Poor’s.

Sell Target – an estimate of the stock price per share at which you, as an investor, should sell your shares. The Sell Target is based on a combination of estimates derived from discounted earnings per share and from the 10 year history of prices relative to revenues, cash flow, earnings, dividends, and book value. Each stock is expected to reach its Sell Target within one to three years.

Standard & Poor’s Earnings and Dividends Rating – is a ranking from A+ to C- of the consistency of earnings and dividends as calculated by S&P.

Standard & Poor’s (S&P) Stars Rating – is a rating from 5 (best) to 1 (worst) based on earnings and price momentum, and other factors. It is calculated by S&P to indicate the relative appreciation potential for all stocks rated (approximately 1,500).

Standard Deviation - measures the variability of returns. The figure indicates the number of percentage points above or below the stock’s average annual return within which any given annual return can be expected to fall two-thirds of the time.

Style – the size and growth or value style of a stock. Size is determined by the market capitalization of the common stock (number of shares outstanding times current price per share) where small includes market capitalization up to one billion, mid includes market capitalization from one billion to five billion, and large includes market capitalization over five billion. Growth and value styles are determined by comparing a company’s Growth Rating to its Value Rating.

Technical Outlook Rating – see Owl Technical Outlook Rating.

Total Rating – see Owl Total Rating.

Value Line Financial Strength – is a relative measure of the financial strength of a company’s balance sheet rated by Value Line. The relative ratings range from A++ down to C in nine steps.

Value Rating – see Owl Value Rating.

VL – abbreviation for Value Line.