Glossary: key metrics of the AI stock analysis explained

Every AI stock analysis from aktienanalyse.ai condenses more than 35 metrics into a score, fair value and verdict. This glossary explains the most important terms you will come across in the report – compact and without jargon. How the analysis works as a whole is explained on the home page; you will find a complete example in the sample analysis (link in the footer).

Valuation metrics

P/E ratio (price-to-earnings)

The share price divided by earnings per share. A P/E of 20 means you are paying 20 times the annual profit. Low looks cheap, high looks expensive – but it is only meaningful when compared with the sector, the company’s own history and its growth.

PEG (price/earnings-to-growth)

The P/E ratio set against expected earnings growth. A PEG around 1 is classically considered fair: a high P/E can be justified if growth is correspondingly high.

P/S ratio (price-to-sales)

Market capitalisation divided by annual revenue. Useful for companies that are not (yet) profitable – such as growth companies – because revenue is harder to “dress up” than profit.

EV/EBITDA

Enterprise value (market capitalisation plus net debt) divided by EBITDA. Popular for comparisons across sectors because the metric neutralises leverage and depreciation policy.

Fair value

The mathematically appropriate value of a share based on fundamentals. The Pro analysis states a fair-value range rather than a single point – valuation is not an exact science but a reasoned corridor.

DCF (discounted cash flow)

A valuation method that estimates future cash flows and discounts them to today. Highly dependent on the assumptions (growth, interest rates), which is why the AI combines it with multiple-based approaches.

Multiples

Valuation via comparative ratios such as P/E, P/S or EV/EBITDA – measured against comparable companies or the company’s own history. Complements the DCF model with a market comparison.

Growth & profitability

Revenue and earnings growth

The rate of change of revenue or earnings, usually year on year. Quality is what matters: profitable, recurring growth counts for more than one-off jumps.

Gross, operating and net margin

How much of revenue is left after production costs (gross), after running costs (operating) and after everything including taxes (net). High, stable margins point to pricing power.

ROE / return on equity

Profit in relation to shareholders’ equity – how efficiently the company works with its shareholders’ money. Careful: high leverage can artificially inflate ROE.

Balance sheet & cash flow

Free cash flow (FCF)

The money that is actually left after all investments – the “truth” behind accounting profit. Dividends, buybacks and debt reduction are paid out of FCF.

Net debt / net debt to EBITDA

Financial debt minus cash, often set in relation to EBITDA. Values well above 3 are considered stretched depending on the sector – important for the risk profile.

Dividend yield & payout ratio

Dividend per share divided by the price, and the share of profit that is paid out. A very high ratio leaves little buffer – moderate, growing payouts are more sustainable.

Terms from the AI report

Score

The overall grade of the analysis: all metric groups (valuation, growth, quality, risk, momentum) feed into one weighted value – a quick overall impression, not a buy signal.

Verdict

The report’s reasoned conclusion in one sentence – an assessment of what the risk/reward balance looks like based on the data. Not investment advice, but a condensed information basis.

Bull case / bear case

The strongest arguments for (bull) and against (bear) the stock. Knowing both sides leads to better judgement – the AI deliberately states them pointedly.

Bull/base/bear scenario

Three fully worked-out future paths in the Pro analysis: optimistic, realistic, pessimistic – each with assumptions and price implication. Shows the range instead of false precision.

Catalyst

A foreseeable event that can move the share price: quarterly results, a product launch, an interest-rate decision, litigation. The Pro analysis lists the most important catalysts with a time horizon.

Risk matrix

The stock’s main risks, ordered by probability of occurrence and potential impact – from competitive pressure to valuation risk.

Technical levels

52-week high/low

The highest and lowest price of the past 52 weeks. Shows where the stock stands within its recent range – near the high there is momentum, near the low there is scepticism.

Moving averages (50/200 days)

The average price of the past 50 or 200 trading days. Prices above the averages are considered an uptrend; many investors watch crossovers of the lines as a signal.

Ready to put it into practice? Have a stock analysed now – from €2, by e-mail with PDF. You will find all the terms from this glossary in the report.