Financial indicators that you must check before investing.
1. Earning Per Share (EPS) increasing for last 5 years.
2. Price to Earnings - PE Ratio low compared to industry.
3. Price to Book - PB Ratio low compared to industry.
4. Debt to Equity Ratio should be less than 1.
5. Return on Equity (ROE) should be greater than 20%.
6. Price to Sales - P/S Ratio smaller preferred (less than 1).
7. Current Ratio should be greater than 1.
8. Dividend Yield increasing for last 5 years.