Plain-language definitions of terms used across MoatMindset's screeners. See the methodology page for how these combine into our Growth+Quality score.
Moat
A durable competitive advantage — brand, distribution, network effects, cost leadership, or switching costs — that lets a company defend high returns on capital over many years rather than one good quarter.
ROCE (Return on Capital Employed)
Operating profit divided by the capital (equity + debt) invested in the business. A consistently high ROCE, typically well above the cost of capital, is one of the clearest fingerprints of a moat.
ROE (Return on Equity)
Net profit as a percentage of shareholders' equity. Measures how efficiently a company turns shareholder capital into profit.
Multibagger
A stock that returns several multiples of its purchase price (2x, 5x, 10x or more) over a holding period, usually several years, generally driven by sustained earnings growth rather than a short-term rally.
Growth + Quality Score
MoatMindset's combined ranking of fundamental quality (ROCE, ROE, margins, debt, earnings consistency), growth (multi-year revenue/profit growth), technical confirmation, and institutional activity into a single score per stock.
CPR (Central Pivot Range)
A set of pivot levels (top, bottom, and pivot) derived from the prior period's high, low, and close, used to judge whether a stock is likely to trend or range.
Heikin-Ashi (HA)
A candlestick charting technique that averages price data to smooth out noise, making the underlying trend direction easier to read than standard candlesticks.
RSI (Relative Strength Index)
A momentum oscillator (0-100) measuring the speed and magnitude of recent price changes, commonly used to flag overbought or oversold conditions.
MACD (Moving Average Convergence Divergence)
A trend-following momentum indicator derived from the difference between two exponential moving averages, used to spot shifts in momentum.
EMA (Exponential Moving Average)
A moving average that weights recent prices more heavily than older ones, making it more responsive to new price action than a simple moving average.
FII / DII Activity
Buying or selling by Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII), including mutual funds. Sustained accumulation is treated as a signal of institutional conviction in a stock.
Predictive Breakout
MoatMindset's forward-looking technical read, attached to top-ranked Growth+Quality candidates, assessing whether price structure supports a near-term breakout.