(8) Capital Requirement Of Company
It is one of the good ways to identify & pick multi-bagger shares or equities. A small investor is always looking for quarterly presentations of the company to get a clear insight of Capex (capital expenditure) of the company.
Capex is the funds that are used by a firm to acquire or upgrade its physical assets like real estate property, industrial buildings, or equipment, etc. These are usually needed to undertake new projects or investments by firm.
A firm that can generate huge return through minimum capital expenditure should be preferred over other stocks. Equities of such firms can give multiple returns in coming years.
(9) Market Capitalization
It is one of the significant ways to identify and pick multibagger stocks. Market capitalization of a company is also an essential aspect to identify solid multibagger stocks.
A firm with large market capitalization will not be able to grow at an enough rate to boost its share price for multiple returns. On the other hand, small cap & medium cap companies can show tremendous growth potential in terms of revenue & profits.
You should try to research wealth generating super stocks in small cap or medium cap industries.
- Multibagger Stocks: Shutterstock