Sun Option

Stocks

Value stocks are defined by 5 fundamentals

1. The most important part of Value stock is that the company's Revenue has to continue growing. 

2. Net Income = Revenue - Expenses. The company must have positive Net Income and also continue growing. 

3. Company has to have a very low debt. A company with high debt is unlikely to survive a bear market or a recession. 

4. The company's Equity has to be positive and continue growing. Equity is very important, it's basically have much the business is worth. 

5. Payout Ratio is the answer whether the company has enough money to pay their dividend. If payout ratio is too high, company will fall soon. That's exactly what happened with Kraft and Heinz (KHC)

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