This page defines the most common market, scoring, valuation, and model terms used in the Amaas research workflow. The definitions are intentionally practical so new users can understand what the platform is showing before reviewing rankings, growth tables, simulations, or individual stock pages.
These terms describe market direction, price forecasting, forecast confidence, and stock behavior.
A bear market or bearish outlook means prices are generally falling or expected to fall. In Amaas, a bearish signal does not automatically mean a company is poor quality; it may mean the short-term trend, regime, or confidence layer is unfavorable.
Market directionA bull market or bullish outlook means prices are generally rising or expected to rise. In Amaas, bullish signals are most useful when they align with strong valuation, profitability, forecast confidence, and investment score.
Market directionGBM stands for Geometric Brownian Motion. It is a mathematical model used to estimate a range of possible future stock prices based on historical price movement, average return, and volatility.
Forecast modelA Markov model studies how a stock or market moves from one state to another, such as bullish, neutral, or bearish. Amaas uses Markov-style information as a confidence and regime-persistence signal rather than as the only basis for ranking a company.
Regime modelForecast Confidence estimates how much trust the model places in the projected outcome. It can be influenced by Markov persistence, volatility, market regime, data completeness, and whether multiple signals point in the same direction.
Confidence layerInvestment Score is the primary company-attractiveness score in Amaas. It combines ranked factors such as GBM upside, valuation, profitability, liquidity, solvency, option value, sentiment, and other quality signals.
Composite scoreVolatility measures how much a stock price moves up and down over time. Higher volatility can create opportunity, but it can also reduce forecast confidence because the range of possible outcomes is wider.
Risk measureMarket regime describes the broader environment, such as risk-on, risk-off, high-rate, low-rate, bullish, bearish, or neutral conditions. Regime context helps explain whether the market environment supports or conflicts with a stock-specific forecast.
Market contextThese terms describe the financial condition of a company.
Solvency measures whether a company has enough assets and earning power to meet long-term obligations. A solvent company is generally better positioned to survive downturns, refinancing pressure, and periods of weak revenue.
Financial strengthLiquidity measures a company's ability to meet short-term obligations using cash or assets that can be converted to cash. In Amaas, liquidity helps identify whether a company has enough near-term financial flexibility.
Short-term strengthProfit margin shows how much profit a company keeps from each dollar of revenue. Higher margins often indicate pricing power, operating efficiency, or a business model with better earnings potential.
ProfitabilityRevenue-to-cost compares the amount of revenue a company produces relative to its direct costs. A stronger ratio can indicate that the company generates sales efficiently and has more room for profit after expenses.
EfficiencyFree cash flow is the cash left after a company pays for operations and capital needs. It matters because companies can use free cash flow to reduce debt, reinvest, buy back shares, or support long-term growth.
Cash generationA balance sheet summarizes what a company owns, what it owes, and the remaining shareholder equity. Amaas uses balance-sheet information to help evaluate liquidity, solvency, and financial resilience.
Financial statementThese terms explain how Amaas evaluates price, upside, and relative attractiveness.
Valuation estimates whether a stock appears cheap, fair, or expensive relative to fundamentals such as earnings, revenue, book value, and cash flow. Amaas uses valuation as one part of the score because a great company can still be a poor opportunity if the price is too high.
Price vs valueOption value estimates the theoretical value of upside exposure using option-pricing logic. In Amaas, it is not a recommendation to trade options; it is a way to quantify how volatility, price, time, and upside potential interact.
Upside exposureA percentile ranking compares one company with the rest of the research universe. For example, a 90th percentile valuation score means the company ranks better than roughly 90% of the companies being compared on that factor.
Relative scoreA composite score combines several factor rankings into one summary score. Amaas separates the main Investment Score from Forecast Confidence so users can distinguish company attractiveness from confidence in the forecast.
Combined rankingExpected return estimates the potential percentage gain or loss from the current price to a modeled future price. It is a forecast, not a guarantee, and should be interpreted alongside risk, valuation, and confidence.
Projected upsideBaseline price is the stock price used when a dataset or ranking was originally generated. Growth tables compare the baseline price with a later current price to show how selections changed over time.
Performance trackingA stop loss is a pre-planned exit level intended to limit downside if a trade moves against the investor. Amaas may display model-driven stop levels for planning, but users should decide whether those levels fit their own risk tolerance.
Risk controlA take-profit level is a pre-planned exit level for capturing gains if a stock reaches a target. It helps turn research into a disciplined trade plan rather than relying only on emotion or short-term market noise.
Exit planningReturn to the home page when you are comfortable with the terminology.