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

    Jul 7, 2017
    Likes Received:
    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.