Glossary
Terms used in the price-ceiling and contribution method — short, citable definitions tied to free tools.
AFFO
Adjusted funds from operations — common REIT cash earnings metric.
Book value per share
Equity divided by shares outstanding.
Contribution simulator
Tool that splits a monthly amount across asset classes.
Contribution target
Percent of income you intend to invest each month.
Dividend yield
Annual distributions divided by price paid.
EPS (earnings per share)
Net income divided by shares outstanding.
Graham number / Graham ceiling
Educational ceiling from EPS and book value: √(22.5 × EPS × BVPS).
Investable income
Cash left after expenses that can fund contributions.
Margin of safety
Discount applied to a ceiling so you do not buy at the limit.
Price ceiling
Your personal maximum buy price for a holding.
Rebalancing
Bringing the portfolio back toward target weights.
Target allocation
Desired portfolio weights by asset class.