The concept of value investing was first originated by legendary investor and Benjamin Graham which was followed by warren Buffet who was also a great value investor till now. According to Warren Buffet value investing is nothing but a real form of investing . Value investing can be defined as approach to invest were investor purchase the undervalue stock. Regarding long-term growth value investing is considered as the corner stone. It actually deals with investing the amount in a valuable stock. As every body is aware of market fluctuation one must be very cautious of picking up the right ones which is really a hard task as one get bewildered at the moment of picking up the stock . Another one factor that haunts a person while taking decision to invest on a particular stock is that fear. So shed out fear and confusion of selecting the right stock and pick up the stock which has certain criteria.
a. Compare market cap and net current asset and see to that market cap is less than or equal to two-third of current asset.
b. Comparing to sector average, P/E value of stock should be less.
c. PEG must be less than one.
d. Debt -to-equity ratio is less than one.
e. Current P/E should P/E be less than past P/E.
f. Comparing to industry average Returns On Equity (ROE) should be high.
g. Price- to - book ratio should be less than or equal to one.
h. Current ratio and quick ratio should be more than one.
i. Stock should yield high dividend.
j. Company should show growth in capital.
k. If you are interested in investing in one concern see to that its debt is low in comparison to other concern.
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