1. The company you have chosen should be at least in the top 5 position
in its segment.
2. The company should be growing with at least 20 % CAGR during previous
2-3 years.
3. The company should be paying dividend regularly.
4. The company should be from the sector having visible growth prospects
for next 4-5 years.
5. The company should not have diverse business interest. Companies with
diverse business interest command less valuation because it is difficult to
value different business verticals.
6. The company should have excellent corporate governance track record.
Though you may find such companies expensive.
7 The Return on Equity should be more than 25%. Higher the ROE,
higher the price.
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