Indicators I check before investing in stocks

Once it comes to check if any stock is worth investing in, I have my „ritual” of things I need to verify before I put my money into anything.

 

Subjectively the most important and slightly less important aspects of each investment:

The most important

  1. Shiller P/E ratio (CAPE)
  2. P/E ratio
  3. Dividend stock
  4. Dividend Yield % & Forward Dividend Yield %
  5. The general feeling

Important

  1. Gurufocus’ Ranks
  2. Dividend Payout Ratio
  3. 5-Year & 10-Year Dividend Growth Rate
  4. Price to Graham Number
  5. Price to Tangible Book
  6. Net Margin %
  7. Return of Equity %
  8. Return of Assets %
  9. Cash to Debt
  10. Price (chart)
  11. Industry
  12. Website
  13. Other (news, rumors, etc.)

Less important

  1. Altman Z-Score
  2. 10-year Cash to Debt history
  3. Piotroski F-Score
  4. Quick Ratio
  5. Net income history
  6. Investor tab (website)
  7. Price to Peter Lynch Fair Value

Just remember – ideal stock does not exist. You have to choose which aspects are the most important to you and decide whether you want to invest your money or not.

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