Glossary of terms

Given our need to be absolutely precise in what we are saying to our clients, we sometimes have to use rather technical language. We hope this glossary will remove any possibility of confusion or misunderstanding.


  • ACWI

    MSCI All Country World Net Index in AUD.

  • ARPU

    Average Revenue Per User.


  • Capital Employed (CE)

    The capital used by a business to earn a return, i.e. net working capital, net property plant and equipment, non-goodwill intangibles (e.g. patents, spectrum licenses) and goodwill.

  • Cluster

    A collection of positions which exhibit similarities in their return profile including operational, end-market, style and macro characteristics.

  • Current Account (CA)

    The sum of a country’s trade balance, income from abroad and net current transfers.

  • Cyclically Adjusted Price to Earnings Ratio (CAPE)

    Today’s price divided by average inflation adjusted earnings (averaged over 7 years to reflect a typical earnings cycle). Median CAPE uses 25 years of history for developed markets and 20 years for emerging markets.


  • Enterprise Value

    The total cost to acquire a business on market, including all liabilities and obligations.

  • Enterprise Value to Sales (EV/SALES)

    The enterprise value of a company relative to its sales. Sales may reflect the last 12 months of operations or a future estimate.

  • Expected Market Return (EMR)

    The annualised expected market return if the 3Y forward CAPE (based on consensus estimates) were to revert to the average of the regional and global sector median through price movements alone (capital gains) plus the long-term average total return to shareholder (dividend + buybacks – stock issuance) yield.

  • Exposure

    See cluster.


  • Factor

    Antipodes defined factors include:
    Growth; A composite of consensus estimate, short, medium and long-term growth rates,
    Multiple Dispersion or “Value”; A composite of valuation multiples, absolute and vs. world relative history,
    Profitability; A composite of short, medium and long-term profitability ratios

  • Free Cash Flow (FCF)

    The cash a firm produces through its operations, less the cost of capital expenditures and change in working capital. Theoretically, FCF is the total amount of money that could be returned to shareholders if no future growth is realised.


  • Organisation of the Petroleum Exporting Countries (OPEC)

    An organisation of 14 oil-exporting developing nations that coordinates and unifies its petroleum policies.


  • Price to Book (PB)

    The share price of a company relative to its book value per share (BPS). BPS may reflect the last 12 months of operations or a future estimate.

  • Price to Earnings (PE)

    The share price of a company relative to its earnings per share (EPS).  EPS may reflect the last 12 months of operations or a future estimate.


  • Quantitative Easing/Tightening (QE/QT)

    An unconventional monetary policy in which a central bank purchases (sells) government or other securities from the market in order to increase (decrease) the money supply.


  • Real Effective Exchange Rate (REER)

    A weighted average of a country’s currency relative to its trading partners, adjusted for the effects of inflation.


  • Sector

    Antipodes defined global sectors include:

    Global Cyclicals; Energy, Industrial Services, Materials, Soft Commodities, Process Industries, Industrial, Durables and Hardware,
    Global Defensives; Software, Internet, Healthcare and Staples,
    Precious; Gold and other Precious Metals,

    Antipodes Partners defined domestic sectors include:
    Domestic Cyclicals; Commercial Services, Health Services, Retail, Transport and Housing & Construction,
    Domestic Defensives; REITS/Development, Communications and Infrastructure,
    Financials; Banks, Investment Management Services and Insurance.


  • Volatility

    A statistical measure of the dispersion of returns for a given security or market index.  Volatility can be measured using the standard deviation or variance between returns from that same security or market index.


  • Wealth Management Products (WMP)

    Wealth management products (WMPs) in China are investments that offer rates of return above regulated interest rates for deposits and are often used to fund investments in sectors where bank credit is restricted.


  • Z-Score

    The number of standard deviations by which a data point differs from the mean, or average.  A score greater than 0 suggests a value that is greater than average and vice versa.