To be honest, I don’t come from a financial background and don’t analyze an extensive list of parameters. My approach to value trading is relatively simple and focuses on certain broad observations:
1st Approach:
I generally look for companies where the stock has seen a significant correction (e.g., a steep decline from its highs) and where there’s been notable improvement in fundamentals over time. These situations often create potential for strong upside.
2nd Approach:
Another scenario I focus on is when a stock has been consolidating around earlier levels, but the underlying financial performance (e.g., profits or revenues) has improved significantly compared to the past.
Of course, I also consider other factors like Debt-to-Equity (D/E) ratio, Return on Capital Employed (ROCE), etc. It’s not about checking every quarterly result but taking a long-term view if the fundamentals align.
For further context, you can check out relevant threads or discussions that explore such ideas:
Note : This post is purely for learning purposes and should not be considered financial advice.