A company's annual report filed with the SEC. Contains comprehensive financial statements, management discussion, and risk factors. BurryDCF extracts Owner's Earnings components from 10-K XBRL data.

A company's quarterly report filed with the SEC. Contains unaudited financial statements for the quarter. BurryDCF uses 10-Q data for more recent financial information between annual reports.

A measure of a stock's volatility relative to the overall market. A beta of 1.0 means the stock moves with the market. Beta > 1.0 indicates higher volatility (more risk), while beta < 1.0 indicates lower volatility. Used in CAPM to calculate the discount rate.

When a company repurchases its own shares from the open market, reducing the total share count. Buybacks offset dilution from stock-based compensation. In Owner's Earnings, actual cash spent on buybacks is subtracted to show the true cost of maintaining share count.

A model that calculates the expected return on an investment based on its systematic risk. Formula: d = Rf + β × (Rm - Rf), where Rf is the risk-free rate, β is beta, and (Rm - Rf) is the market risk premium. Used to determine the discount rate in DCF models.

The expected cash flow per share for the next year. In BurryDCF, this can be based on Owner's Earnings per share, Free Cash Flow per share, or dividends per share, depending on the selected mode and data availability.

The annual percentage change in shares outstanding. Positive values indicate dilution (shares increasing from stock grants), negative values indicate net buybacks (shares decreasing). BurryDCF calculates this from historical SEC filings and caps it between -20% and +50%.

The required rate of return used to calculate present value. It represents the opportunity cost of capital—what investors could earn elsewhere at similar risk. Higher discount rates result in lower present values. Typically calculated using CAPM.

The ratio of Owner's Earnings to Wall Street's 'Adjusted Earnings' (Net Income + SBC). Measures how much of reported earnings actually belongs to shareholders. Quality > 80% is good, 60-80% is caution, < 60% is a red flag indicating inflated earnings.

Cash generated by operations minus capital expenditures. Represents cash available for distribution to shareholders, debt repayment, or reinvestment. Often used as CF₁ in DCF models, but doesn't account for the true cost of stock-based compensation.

A valuation model that calculates the present value of a perpetually growing stream of cash flows. Formula: PV = CF₁ / (d - g). Assumes constant growth forever, which is unrealistic but provides a useful baseline. Also called the Dividend Discount Model.

The assumed perpetual annual growth rate of cash flows. In BurryDCF, this is calculated from Owner's Earnings CAGR when available, or dividend growth as a fallback. Must be less than the discount rate for the GGM formula to work.

The percentage difference between Traditional GGM fair value and Burry's dilution-aware fair value. A 20% haircut means the dilution-adjusted value is 20% lower. Larger haircuts indicate more significant dilution impact on shareholder value.

The 'true' or fundamental value of a stock based on its expected future cash flows, independent of its current market price. If intrinsic value exceeds market price, the stock may be undervalued (and vice versa).

The expected return of the stock market above the risk-free rate. Historically around 5-7% annually. Used in CAPM to calculate the discount rate. Represents the extra return investors demand for taking on market risk.

A company's total profit after all expenses, taxes, and costs. The 'bottom line' of the income statement. Used as the starting point for Owner's Earnings calculation. GAAP Net Income includes non-cash SBC expense.

Michael Burry's cash flow metric representing true earnings available to shareholders. Formula: Net Income + GAAP SBC - Actual Buybacks - RSU Tax Withholdings. Shows the real cash cost of stock-based compensation, often much higher than GAAP expense.

The current worth of future cash flows, discounted at the required rate of return. The fundamental concept behind DCF valuation—a dollar today is worth more than a dollar tomorrow due to time value of money.

The theoretical return on an investment with zero risk, typically represented by the 10-year US Treasury yield. Used as the baseline in CAPM—all risky investments should return at least this much.

A form of stock-based compensation where employees receive shares after meeting vesting conditions. When RSUs vest, companies often withhold shares to cover tax obligations, requiring cash payment to tax authorities.

Cash payments companies make to tax authorities when RSUs vest. Often hidden in the financing section of cash flow statements. A significant but overlooked component of the true cost of stock-based compensation.

The SEC's Electronic Data Gathering, Analysis, and Retrieval system. A free database of all public company filings including 10-K (annual) and 10-Q (quarterly) reports. BurryDCF pulls financial data directly from SEC EDGAR XBRL filings.

Compensation paid to employees in the form of stock options, RSUs, or other equity instruments. GAAP requires expensing SBC, but it's a non-cash charge. Wall Street often adds it back, ignoring the real cost of dilution or buybacks needed to offset it.

eXtensible Business Reporting Language. A standardized format for financial data that allows automated extraction and analysis. SEC requires public companies to file in XBRL format. BurryDCF uses specific XBRL tags like 'us-gaap:NetIncomeLoss'.