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Key indicators for investing in a company

One key indicator of investing in a company is looking at the progress of the company, it's reputation to the public and how long the company has been in existence. All this are indicators to know whether to invest in a company or not. The progress of a company/business is a key indicator to know whether to invest or not. Nobody will invest in what does not have a future because no one wants to waste his/her money.
 
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As an investors or financiers, what are the key indicators to check out for in any intending company/business you would like to invest in?
Their years of existence will tell if the company is legit or not. Their online reviews help as well , though most of the reviews seen online are fake .
Their reward system too . When the reward system is too good to be true , it is probably not true .
Most companies with higher reward don't last long .
 
There are many things one must consider before he or she decides to venture or invest in a business concern. The following are some of the things to look out for:
  • Earnings per share (EPS)
  • Price to earnings (P/E) ratio.
  • Price to earnings ratio to growth ratio (PEG)
  • Price to book value ratio (P/B)
  • Dividend payout ratio (DPR)
  • Dividend yield.
 

Key indicators for investing in a company.​

There are some key indicators used by investors.
Earnings per share (EPS) This is the amount each share. ...
Price to earnings (P/E) ratio. ...
Price to earnings ratio to growth ratio (PEG) ...
Price to book value ratio (P/B) ...
Dividend payout ratio (DPR) ...
Dividend yield.
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Key indicators for investing in a company.​

There are some key indicators used by investors.
Earnings per share (EPS) This is the amount each share. ...
Price to earnings (P/E) ratio. ...
Price to earnings ratio to growth ratio (PEG) ...
Price to book value ratio (P/B) ...
Dividend payout ratio (DPR) ...
Dividend yield.
One key indicator of investing in a company is looking at the progress of the company, it's reputation to the public and how long the company has been in existence. All this are indicators to know whether to invest in a company or not. The progress of a company/business is a key indicator to know whether to invest or not. Nobody will invest in what does not have a future because no one wants to waste his/her money.
 
imvetsing in a company requires adequate investigation and information. There’re some criteria I consider before investing In any company.
First of which is their past performance. Their past performance has a lot to say about the seriousness and how goal driven the company is. Also past performance will give an insight on how the company has performed in recent years.
Another criteria is the company’s goal. The company’s goal determines the projection of the company and how they’re going to stay relevant in the market in the occasion of new trends.
 
Before trusting your investments with any company, one of the major index you need to be aware of is how that company fare during inflation..in my country, inflation hits us anytime. This is why one needs to know how well a company do during inflation
 
You must consider the price to earnings ( P/E). This will help a lot because some investors consider a company with high P/E to be overpriced, but sometimes, companies with high P/E offer high returns.
 
Most people like to look at the earnings per share or dividend ratio but for me I prefer to look at a more interesting ratio. I would look at the debt to equity ratio, this shows what portion of a firms total equity is in the form of debt. This should give you an idea on the health of such firm.
 
Investing in a company these days require a thorough background check and research. You have to check for a lot things, including looking at the companies performance and growth rates in the future. A lot of things go into business before investing.
 
Before investing in a company or business it's very important that you do some background checks to determine how healthy the company or business is before putting your money. One of the major things to consider is the company balance sheets to know if they are making profits and if they are developing at the required rate, also need to know the capabilities and competency of the company management board because their decisions will determine if your investment yields dividend or not.
 
Before investing in a company ,the company must prove beyond all doubts that they are capable of yielding profits consistently and has the potential for growth and expansion.
An agreement should be written to decide how much return on investment the company must yield every year.
 
You have to first of all do some research about the company you're investing on, this is very important and necessary. If you're in my country Nigeria then the first thing you need to do is to incorporate your business at the Corporate Affairs Commission, I set mine up as an LTD, and you have an option to set up as an enterprise the choice is yours. After that you have to get a tax ID number. Lastly if you're dealing on food products then you have to get a NAFDAC number.
 
I think one important thing is to check the goal and profitability ratio of the company before even thinking of investing , so you won't make mistakes of investing and regret at the final and also check the profit and loss sharing ratio of the company , i think this would also help also i think
 
To do research before investing in. Any company is good thing for the investor.first ypu must have to know about the history of the company.then ensure that the company has trustworthy management,also check the credibility of the company,also check if the company is registered or not.
 
As an investor, the first thing I would look out for is the company's leverage ratio. If the company doesn't have the ability to pay their outstanding debt, then I won't be investing in them. In relation to that, having a good financial health is what I seek for in a company. Then the next one is if they pay their dividends as they should be.
 
You must question their credentials, and they must have a testimonial of survival over the years, you cant just start investing in a company that just started within some month out less than a year! They must have been able to survive despite the current tragedy to ensure your safety.
 
Before deciding on investing in any company, you must check out how profitable the company is, research on their previous profit and loss account to see how lucrative the company is. This is the most important indicator of a company's success or likelihood of success.
 
one important quality that whoever wants to invest must possess is research,before you venture into any investment research all you can about it and get tangible facts that make you aware that you are not falling in the wrong way
 
The first thing that I want to know of the company if it is worth investing in is the age. If the company is new then there may be issues. A company with a long life is one proof that it is performing good otherwise it would not last long in the field of commerce. That is one reason why they call the stocks of long time companies blue chip because it means the shares of stocks are durable. Anyway, the financial performance is also a concern. When a company is not earning I just don't know how you will know it.... only if there is an insider who will tell you.
 
This measures the relationship between the earnings of a company and its stockprice. It’s calculated by dividing the current price per share of a company’s stock by the company’s earnings per share.
Example – A company’s stock currently sells for $50 per share and its earnings per share are $5. That means it has a P/E ratio of 10 ($50 divided by $5).
The P/E ratio can tell you whether a stock’s price is high, or low, compared to its earnings.
 

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