(16) Stock Price In Relation To Liquidating Value
It is one of the significant ways to identify & pick multi-bagger shares or equities. Stock trading at a price less than their net current assets value (NCAV) is most likely to be increased with time.
Net current assets value is a good means of calculating worth of a company if it would have to be liquidated. Stocks trading below liquidating value or with low NCAV value are considered to be ‘real bargains’.
This is particularly true if company is not in a danger of squandering their assets. When tracking multibagger stocks, you should also look towards dividends and bonus paid by company, FV split, etc.
Investors are advised not to follow any multibagger stock tips or ideas blindly from stock analysts or advisers. However, you should perform your own research to identify such hidden gems.
Image Source: Shuterstock