PAST, PRESENT, FUTURE AND MORE

Given below is a list of things to check before investing in a company.

PAST

1.What has been the growth in the company’s sales?

2.What has been the growth in the company’s profits?

3.What has been the growth in the company’s earnings?

4.What has been the least rate of return on net worth in the last 8-10 years?

5.How much has been the company’s earnings per share in the last 12 months?

PRESENT

1. How much cash and bank balance does the company have?

2. How much net current assets does the company have?

3. How much investments does the company have?

4. What is the company’s net worth?

5. What is the company’s market capitalization?

FUTURE

1. What will be the Initial Rate of Return that I will get if I buy the company?

2. What is the value of the company according to most conservative estimates?

MORE

1.What does the company do?

2.What is the economics of the business?

3.How is the Management?

4.Who are the competitors?

5.What is the current rate of interest in a bank, fixed deposit, NSC, PPF etc.?

6.What is the current rate of inflation?

7.What is the tax rate on various investments?