8 Financial Indicators that You Must Check Before Investing.

Discussion in 'School Of Stock Market' started by Kritesh Abhishek, Sep 1, 2017.

  1. Kritesh Abhishek

    Kritesh Abhishek Member

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    Here is the list of 8 Financial Indicators that every stock investor should check for determining a fundamentally strong company:
    1. Earnings Per Share (EPS) – Increasing for last 5 years
    2. Price to Earnings Ratio (P/E) – Low compared to Industry
    3. Price to Book Ratio (P/B) – Low compared Industry
    4. Debt to Equity Ratio – Should be less than 1
    5. Return on Equity (ROE) – Should be greater that 20%
    6. Price to Sales Ratio (P/S) – Smaller ratio (less than 1) is preferred
    7. Current Ratio – Should be greater than 1
    8. Dividend Yield – Depends on Investor/ Increasing for last 5 years preferred
    If you want to read further, you can find the complete post here: https://www.tradebrains.in/financial-ratio-analysis-must-know/

    Besides, do comment below which additional Indicators you regularly use for determining the health of a company.
     
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