Few hacks to identify bad stocks⚠️

• Debt to equity ratio
• Interest coverage ratio
• CFO/PAT
• Promoter Pledging
• Market cap VS Enterprise value

Let’s discuss in detail! ⤵️

1⃣ Debt to Equity ratio

If a company has high debt then it means that the companies debt value is more than its asset value which is not a good sign.

✅ratio < 1 is considered ideal.
2⃣ Interest coverage ratio

This ratio tells us how efficiently the company is paying the interest charged on its debts.

✅ratio > 2 is considered ideal.

#investing #nifty50
3⃣CFO/PAT

If the CFO or cash flow statement is consistently positive every year then it's a good sign.

On the other hand, if the CFO is less than the PAT of the company then it can be a red flag.

✅ratio > 1 is considered ideal.

#Nifty
4⃣Promoter Pledging

A company requires funds for expansion. It can do it by pledging the promoter's stake.

✅value < 30% is considered ideal.

#stocks #StockMarketindia
5⃣Market cap VS Enterprise value

Market cap is calculated by the stock price of the company multiplied by the no. of shares outstanding while enterprise value will tell you the true picture of the debt of the company.

✅ EV < Market Cap is considered ideal.
There are 20+ ways to identify bad stocks through which you can lower your risk in investing.

Find some of them here⤵️
https://t.co/1awsbx4FjL

Add some more below. 👇

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Where to begin?

So our new Secretary of State Anthony Blinken's stepfather, Samuel Pisar, was "longtime lawyer and confidant of...Robert Maxwell," Ghislaine Maxwell's Dad.


"Pisar was one of the last people to speak to Maxwell, by phone, probably an hour before the chairman of Mirror Group Newspapers fell off his luxury yacht the Lady Ghislaine on 5 November, 1991."
https://t.co/DAEgchNyTP


OK, so that's just a coincidence. Moving on, Anthony Blinken "attended the prestigious Dalton School in New York City"...wait, what? https://t.co/DnE6AvHmJg

Dalton School...Dalton School...rings a

Oh that's right.

The dad of the U.S. Attorney General under both George W. Bush & Donald Trump, William Barr, was headmaster of the Dalton School.

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