Cheap action can mean a great business opportunity. The investor who gets his hand right when betting on a paper that is temporarily out of date can have earnings well above the average of the Stock Exchange. But there is also the possibility of holding a mico in hands – those cheap stocks of companies that are on the verge of bankruptcy. Therefore, taking into account only the price is a bad deal.
The request of Twitter, the consultancy Economatica listed the cheapest companies in the Brazil 100 Index (IBrX100). In order to conclude that these shares are in account, the consultancy considered the share price on the value of the company’s net worth – that is, how much the paper costs in relation to the company’s value. This indicator shows how much the investor is willing to pay for the company’s equity, and serves to give more basis for him to start choosing the stock in which to invest.
Still, that number is just a starting point. It is necessary to evaluate other indicators, such as return on equity (ROE), among other factors to understand whether the current price does indeed mean an opportunity to make a good deal or if it is a trap. From the consultancy’s list, the analysts consulted by the Twitter pointed out which cheap papers have the potential to return. They reached six companies. Check out.