- Multibagger stocks provide multiple times price return compared to their initial investment value
- These stocks have strong fundamentals; however, they are undervalued
- Business with a large scope of growth in a short period are potential multibaggers
Multibaggers are lucrative stocks that provide returns several times higher than their initial investment value. To be more specific, if a stock price rises by double, it's called a double bagger, while if the price grows multiple times, it's called a multibagger.
These stocks are usually undervalued and have strong fundamentals. Generally, businesses with huge room for growth in a short period can be considered as multibagger stocks.