Are you searching for Multibagger Stocks?
Here I Will tell you the 6 secrets that you can use to identify multi-bagger stocks.
An investor is always searching for multi-bagger stock for the investment and most of the time they don't find it, I will tell you the secrets but first, let's understand Multibagger.
Here I Will tell you the 6 secrets that you can use to identify multi-bagger stocks.
An investor is always searching for multi-bagger stock for the investment and most of the time they don't find it, I will tell you the secrets but first, let's understand Multibagger.
Multibagger Meaning
Stocks that multiple times multiply are called Multibagger means these types of stocks return multiple times to their cost. that's why all Investor search for multi-bagger stocks so they can get a higher return.
for example, you purchased a stock at the cost 10$ and hold it for three months, after three months the stock price moved up to 20$, so it called double baggers stock. Similarly, the price went up to 100$ in just 24 months or 2 years then it called 10 - baggers.
According to the Economics Times
According to the Economics Times
Stocks that give returns that are several times their costs are called multibaggers. These are essentially stocks that are undervalued and have strong fundamentals, thus presenting themselves as great investment options. Multibagger stock companies are strong on corporate governance and have businesses that are scalable within a short span of time.
6 Tips To Get Better Multibagger Stocks
Now I am going to reveal that 6 secrets to help you get better Mutlibagger stocks.
Future business potential
the first thing you want to buy stocks for the future, so make sure the companies future business potential will grow.
understand the reality, you will make money when the company will make money.
Calculate the Future Cashflow of the company because money is seen by the mind.
so make sure EBITDA percentage is growing quarter on quarter.
if Sales of the company is growing, it means the company's product quality is very good.
that's why Sales is increasing.
Source: economic times
understand the reality, you will make money when the company will make money.
Calculate the Future Cashflow of the company because money is seen by the mind.
Buy Undervalued Stocks
Undervalued stocks mean stock which has a good fundamental and value but due to some reason, that stock is trading at low.
So always try to buy Undervalued Stocks, it can give you multiple returns.
EBITDA
EBITDA stands for Earnings Before Interest Tax Depreciation Amortization. it indicates management performance, if management is not doing well then that company will not be Multibagger.so make sure EBITDA percentage is growing quarter on quarter.
"When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever." - Warren Buffett
Sales & Products
The best way to check the multi-bagger stock is by checking its Sales & Products.if Sales of the company is growing, it means the company's product quality is very good.
that's why Sales is increasing.
Company's Debt
Company's Debt should be limited means 1:1 Debt to Equity Ratio is Considered well, but the debt level should not be higher than the debt ratio.Source: economic times
ROE
ROE stands for Return on Equity, it means how much return equity capital or shareholders' fund is generating.
the company which has 25% ROE is considered good stocks.
These all the factor will help you to identify Multibagger stocks.
These all the factor will help you to identify Multibagger stocks.
