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What are the financial indicators to look at before buying a stock?

01 March. 2024

1- P/E ratio which is the price of the stock divided by earning per share. The lower this value means there is more upside potential for the stock price to rise.

2- Profit from operations ideally you want to look at the financials of the company and make sure it’s making profit and that this profit is coming from operations not from the sale of its assets.

3- EPS growth this is a good indicator to look for.

4- Dividends paid this is important and usually attracts institutional investors and long term investors and assures some stability to the stock.