Thread by @finologyticker

Few hacks to find undervalued stocks 🪙

• ROE
• Net Profit Growth
• Net Profit
• MCAP
• PEG ratio
• Promoter Pledging

Let's discuss in detail. ⤵

1️⃣ ROE

It is the measure of the profitability of a business in relation to equity.

✅ 3yr Avg > 10 is considered ideal

2️⃣ Net Profit Growth

Net profit growth shows how rapidly a company has been able to boost its profits.

✅ Y1 > 15 is considered ideal

3️⃣ Net Profit

It is the profit that a company generates after accounting for all its expenses.

✅ 3yr CAGR > 10 is considered ideal

4️⃣MCAP

It is the total value of companies outstanding shares.

✅ > 500 is considered ideal

5️⃣PEG ratio

Price/earnings-to-growth ratio depicts the relationship between a stock's P/E ratio and projected earnings growth rate over a specific period of time.

✅ < 1.5 is considered ideal

6️⃣Promoter Pledging

It is a practice where promoters keep their shares as collateral.

✅ Q1 < 10 is considered ideal

Find more about undervalued stocks only on

#StockMarketindia #stockstowatch #finance

blog.finology.in/investing/unde…