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Added: (Tue Jun 11 2019)

Pressbox (Press Release) - Multibagger stocks are analogues to those merchandise offers where you pay for one dress and you get two more for free!! When one invests in Multibagger stocks, the return is several times more than the investment. Stocks with strong fundamentals are great investment options even if they are undervalued. Features like good corporate governance and ventures which could be expanded in brevity of time could be looked upon as those of a multibagger company.

Multibagger stocks can be numbered specifically in accordance to the folds of returns it can fetch. For instance a stock that generates returns 10 times its cost is called a 10-bagger company.
How do we recognize a multibagger stock?

1. Debts must be within the ability of the company of paying them back. Certainly there is no way we can identify that limit because itís a relative measure and not a standard one. However, vaguely debts equal to or less than 30 per cent of the equity value is fair deal.

2. Past quarters performance makes a significant indicator for a multibagger stock. Revenue generation is expected to be mushroomed every next quarter. Occasionally, multiples might be low. In that case companyís conduct and accomplishments appropriately allude to the fact that the business does have a prospective ballooning on the brighter side.

3. There are a few things one must consider about the source of earning as well. Revenue segment must be of the nature that is potent enough to widen at a macro level and Operations worth expanding in future.

4. Current PE (Price to Earning) ratio can be concluded by calculating EPS (Earnings per Share) for the following 12 months. Fast growing PE levels then the stock price can be considered as a fair chance of that stock being a multibagger one.

5. Another area of scrutiny could be the major changes that might occur and affect a companyís growth and operations which in turn decides if a stock is a multibagger or not.

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