How to evaluate a company is it worth to invest in.? - Seedly
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Anonymous

Asked 2w ago

How to evaluate a company is it worth to invest in.?

Hi everyone, I understand that before we pick a company to invest. We need to understand the health of the company. I usually look at the management, market size(potential growth/global movement)of a industry/country, financial statement, competitors and company innovation.

As Long as I look at all these, I feel that financial report tell me the health of the company. Can someone share with me what are the things u look at financial report. Eg. Pe, eps, revenue, net income,debt to ratio.

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For a growth company, I would also look at free cash flow, interest coverage, management remuneration.

for a dividend paying company, besides what you have listed, I would also look at the payout ratio, outstanding shares, profit margin

hope this helps​​​

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Question Poster

1d ago

Thanks. Do you look at P/S price to sale ratio?
CH
CH

1d ago

Not really. but i understand usually P/S is used for growth companies which are not profitable yet (ie sales, rather than earnings). and also because it is growth companies, there should be a "benchmark" or a comparable peer to compare whether that p/s is cheap or expensive.
Thank You!
Can you clarify
I wonder if
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