Not every stock will be multibagger stock.
Clearly the success of any business is going to depend on how well management
uses its equity and its capital.This is commonly measured by two ratios called
return on equity and return on capital.Putting it simply, these are defined as the
earnings of the company divided by equity & by capital.These abbreviations are ROE & ROC.
The growth of a company with good capital & less debt, good returns can be expected.
For Multibagger stock need to study the history of the stock for more that 3-4 years.
short-term gain will not make multibaggers.
Clearly the success of any business is going to depend on how well management
uses its equity and its capital.This is commonly measured by two ratios called
return on equity and return on capital.Putting it simply, these are defined as the
earnings of the company divided by equity & by capital.These abbreviations are ROE & ROC.
The growth of a company with good capital & less debt, good returns can be expected.
For Multibagger stock need to study the history of the stock for more that 3-4 years.
short-term gain will not make multibaggers.
