Here we are sharing some of the high growth stable companies which are financially strong and virtually debt free. Our criteria is as
Market Capitalization > 3000
Average return on equity 5Years > 20 AND
Debt to equity < 0.1 AND
Interest Coverage Ratio > 2 AND
PEG Ratio <= 1) AND
Profit growth 5Years > 20
Market Capitalization > 3000
Average return on equity 5Years > 20 AND
Debt to equity < 0.1 AND
Interest Coverage Ratio > 2 AND
PEG Ratio <= 1) AND
Profit growth 5Years > 20
Definition of the parameters:
Market Cap :- Market capitalization, commonly called market cap, is the market value of a publicly traded company's outstanding shares. Market capitalization is equal to the share price multiplied by the number of shares outstanding.
Return on equity :- The return on equity is a measure of the profitability of a business in relation to the equity. Because shareholder's equity can be calculated by taking all assets and subtracting all liabilities, ROE can also be thought of as a return on assets minus liabilities.
Debt to Equity :- The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage.
PEG Ratio :- The price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The 'PEG ratio' is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share, and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate.
Profit Growth :- Growth rates are computed by dividing the difference between the ending and starting profits for the period being analyzed and dividing that by the starting value. The compound annual growth rate (CAGR) is a variation on the growth rate often used to assess an investment or company’s performance.
List of the companies:- Sorted based on ROCE
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