Factor Definitions

FACTOR	DEFINITION
Beta	Sixty month regression beta to the S&P500 return
Book/Price	Book Value/Market Cap
Buybacks	One year reduction in shares outstanding
Capex/Assets	Capital Expenditures/Total Assets
Capex/Sales	Capital Expenditures/Total Revenue
Debt/Equity	Debt/Equity
Dividend Yld	Dividends per share/Price
Earnings Growth	One Year Earnings Growth
Earnings/Price	Four Quarter Consolidated Net Income/Market Cap
EBITDA/EV no-financials	EBITDA/Enterpirse Value; Financials are excluded
FCF Yield no-financials	(Cash From Operating Activities - Capital Expendititures)/Market Cap; Financials excluded
GROWTH	Blend of sales growth and asset growth

Factors are used in long-short portfolios based on factor score. Polarity is long the highest value, and short the lowest value, except for Reversal. Portfolios are rebalanced monthly.