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Key indicators for investing in a company

Befire investing in a company as an investor you must first research about the background of the company or business. Know what the foundation of the company is all about and the way the company operates. Know if the company would bring in profit to you or not
 
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You might not be able to make billions of dollars like the big boys on investing but I always employ this 3 rules whenever I want to invest my money in a company.
1. Do the company have straight business model? Most often a very simple and straight forward pain point solving is better.
2. Are people most likely to buy the product over and over again?.
3. Do they have a reputable brand and strategy
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You might not be able to make billions of dollars like the big boys on investing but I always employ this 3 rules whenever I want to invest my money in a company.
1. Do the company have straight business model? Most often a very simple and straight forward pain point solving is better.
2. Are people most likely to buy the product over and over again?.
3. Do they have a reputable brand and strategy
 
For me to invest in a company, I must know what sector of the economy it belongs to. How profitable is the business the investment is into, what is the net worth of the business, it's location and so on.
 
One of the key thing to look after when investing in a business or company is the Efficient Marketing Hypothesis.
This is structured towards know Ing the rate of how information get into the market and how people tend to react to any information concerning it based on the following forms:

Weakness marketing hypothesis
Semi strong marketing hypothesis
Strong marketing hypothesis
 
The goal is to identify the Holy Grail of stock investing … the stock … the kind of stock that, if stocks were people, then Apple, General Electric, Proctor & Gamble, and Microsoft would be peasants compared to this king. Yeah, that’s the kind of stock that would be the Grand Pooh-Bah of your portfolio! Well, hold your horses.

Seriously, it’s unlikely that you’ll find a stock with all ten hallmarks, but a stock with even half of them is a super-solid choice. Get a stock with as many hallmarks as possible and you likely have a winner
 
I check the company background, I check the the credibility of the owner of the company, I go as far to investigate if they are paying their staff or not, because a lot of companies don't pay staff but want to satisfy their customers.
 
According to my own point of view I believe the key indicator I need to see before investing in a business is the brand of the product and second I need to know the level of that brand in the market and I also need to know about their interest rate
 
Before I can be convinced to invest in a company, I first study her financial reports like trading profit and loss account, balance sheet and cash flow statement. Then I will make a research to see the the company has goodwill in the eyes of the public.
 
Before investing in any company you have to check the company's history if your company is registered and then the stability of the company is also very essential you can still check your profit margin and business model
 
Earnings Growth. Check the net gain in income that a company has over time. Stability. Relative Strength in Industry. Debt-to-Equity Ratio. Price-to-Earnings Ratio. Management. Dividends.
 
You have to check out the success rate of said company or business, because then you will know if there is a higher chance of success in what you are about to invest in.
If it is a starting business, I think a one on one with the business owner is advisable so you can examine him and get to know him to determine if your money is in good hands.
 
Before I invest in a company or any business. I will have to check the story of the company. I have to check the financial strength and their liquidity ratio. And also the management style. And lastly the percentage on my investment.
 
Key indicators to look out for before investing in a company are:-
Price to earnings (P/E) ratio
This measures the relationship between the earnings of a company and its stock price. It’s calculated by dividing the current price per share of a company’s stock by the company’s earnings per share.

Earnings per share (EPS)
This is the amount each share would get if a company paid out all of its profit to its shareholders. EPS is calculated by dividing the company’s total profit by the number of shares.

Price to earnings ratio to growth ratio (PEG)
This helps you understand the P/E ratio a little better. It’s calculated by dividing the P/E ratio by the company’s projected growth in earnings.

Dividend payout ratio (DPR)
This measures what a company pays out to investors in dividends compared to what the stock is earning. It’s calculated by dividing the annual dividends per share by the EPS.
 
One of the key things to consider in investing in a company is the originality and historical background of the company. Is the company capable of rendering the services or giving what is promised. What is the net worth of the company. These and much more needs to be considered before investing.
 
In any company, the first thing to consider is your earnings per share if you want to invest or purchase something. If the company pays out all of its earnings to the shareholders, this is the sum each share will receive. Then you can now consider the cost to income ratio. Secondly, the thing, is how the company is being run, whether or not they are fair, their policies go in hand with the law, do they try to employ the best people or not.
 
Some things to look out for when you want to invest in a company,viability of the shares in the market,the competence of the firm in that sector and their track record over the years.
Their manpower and capability of their personell also matters and their profit ratio per share.
 
Before you invest in any company, you must check out the net worth of the company, it debts and liabilities. How good and acceptable are the products and services of the company in the markets. You also need to know how often do the company audit it accounts.
 
Here 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.
 
Concerning the key indicators for investing into a company. Well, I believe a company that an individual can invest in should be a company with credibility, a company that has good reviews from it customers, that is, it is advisable and always best to make research before investing
 
Well, in reply to your question above concerning what are the things to check before investing in a certain company, i will say first of all you have to to do your due diligence on the company before investing, check if they a registered company
 

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