(6) Business For A Cause
It is one of the most important ways to identify & pick multi-bagger shares or equities. The survival of the business is often viable when it has some positive cause.
Company that offers products & services to make the life of people better are quickly accepted by industry. These technologies that can redefine the way of doing things often become the game changer for the share price in long run.
You can perhaps take the help of female traders to find customer-friendly multibagger companies as women are usually known to be the first one to identify such hidden gems.
(7) Earning Per Share (EPS) & Price Multiples
It is one of the most common ways to identify and pick multibagger stocks. Stock price of a company vary mainly on the basis of quarterly performance of basic EPS reported by company.
Smart investors always calculate the Trailing Twelve Months (TTM) basic EPS and revenue for calculating current stock price to EPS (P/E) ratio and price to sales (P/S) respectively.
These financial indicators or ratios are significant in determining the current valuation of a company in markets.
If you observe a good performance of the company along with its EPS as compared to its stock price then you have probably identified the right stock for good speculative gains.
- Multibagger Stocks: Shutterstock