(10) Cheap Stock Valuation
It is one of the cost-effective ways to identify & pick multi-bagger shares or equities. You should make your positions in super returning stocks only at cheaper valuations.
It is due to the fact that a stock can show increase in share price only if it is available cheap as compared to its peer groups from large cap industries.
Once the valuation of your great equity becomes too stretched along with its market cap then the possibility of further increase in share price is diminished to a greater extent.
(11) Share Holding Pattern
It is one of the most critical ways to identify and pick multibagger stocks.The number of share holders & its distribution pattern is a necessary feature to look when chasing your favorite multibagger stock.
You can make multibagger stock investment at cheaper valuations. It is possible only when it is less popular i.e. mutual funds & big investors are away from it.
You should not forget to check share holding pattern of the equity i.e. promoters stake & retailers stake in the company.
- Multibagger Stocks: Shutterstock