Uncover the Market’s Next 100-Baggers with the Multi-Bagger Stock Screener

What if you could identify stocks with the potential to grow your investment 100-fold? While these “100-baggers” may seem elusive, our groundbreaking Multi-Bagger Stock Screener is designed to help you uncover these hidden gems. Inspired by the principles outlined in Chris Mayer’s book “100 Baggers,” this screener focuses on the key characteristics shared by stocks that have historically delivered extraordinary returns.

The Essence of a Multi-Bagger Stock

In his book “100 Baggers,” Chris Mayer studied the stocks that returned $100 for every $1 invested, and identified several common traits. These stocks typically exhibited strong revenue growth, high returns on invested capital (ROIC), and reasonable valuations relative to their growth prospects. By focusing on these key attributes, the Multi-Bagger Stock Screener aims to identify companies with the potential to deliver outsized returns over the long term.

How to use the Multi-Bagger Stock Screener

Multi-Bagger Stock Screener Demo: Find 100-Bagger Stocks Quickly

Watch this video on YouTube

Click on the video and expand to full screen to view a demo of the Multi-Bagger Stock Screener.

Detailed instructions are also provided below the dashboard.

If you need a refresher on any of the financial metrics used, our Stock Investing Glossary is just a click away.

The Multi-Bagger Stock Screener evaluates companies based on a carefully selected set of metrics that align with the characteristics of historical 100-baggers:

Revenue Growth (10yr) > 10% p.a.: This metric measures the company’s average annual revenue growth over the past 10 years. Consistent, high revenue growth is a hallmark of potential multi-baggers, as it demonstrates the company’s ability to expand its market share and customer base.
EPS Growth (10yr % p.a.) > 15% p.a.: Earnings per share (EPS) growth indicates the company’s ability to consistently increase its profitability over time. Strong and sustained EPS growth is a key attribute of stocks that have the potential to deliver exceptional returns.
Cash Conversion Ratio (10yr) > 80%: The cash conversion ratio measures the company’s ability to convert its accounting profits into actual cash flows. A high and consistent cash conversion ratio suggests the company’s earnings are of high quality and can be reinvested for future growth.
ROIC (10yr) > 15% p.a.: Return on invested capital (ROIC) measures the efficiency with which a company allocates its capital. A high ROIC indicates the company is creating significant value for its shareholders and has a strong competitive advantage.
Payout Ratio (Div/FCF) < 25%: The payout ratio, calculated as the proportion of free cash flow paid out as dividends, provides insight into the company’s capital allocation priorities. A low payout ratio suggests the company is retaining a significant portion of its cash flows to fund future growth initiatives.
Interest Coverage Ratio < 10: This ratio measures the company’s ability to meet its debt obligations using its operating profits. A high interest coverage ratio indicates financial stability and resilience, which are crucial for long-term growth.
PE Ratio – R&D adj. < 30: The PE ratio – R&D adj. is a valuation metric that adjusts the company’s earnings for its research and development expenses. This adjustment helps to account for the potential future benefits of R&D investments. A reasonably low PE Ratio – R&D adj. suggests that the company’s stock price is not overly inflated relative to its earnings potential, considering its R&D investments.
PEG Ratio (10yr growth hist.) < 1: The price/earnings to growth (PEG) ratio compares the company’s valuation to its historical earnings growth rate. A low PEG ratio relative to the company’s growth prospects may signal an attractive entry point for long-term investors.
Discount to Fair Value (FCF) < 30%: This metric estimates the stock’s current discount or premium to its fair value, based on its free cash flow generation and growth potential. A significant discount to fair value may indicate an undervalued opportunity with multi-bagger potential.

Multi-Bagger Stock Screener Dashboard

Detailed instructions for the Multi-Bagger Stock Screener

Tailor your screening criteria using the dropdown menus and sliders, filtering by Exchange Region, Sector, Industry, and Market Cap to match your investment goals and risk tolerance.
Review the list of stocks that meet your criteria, which will be sorted by Market Cap by default. Re-sort the list by clicking on any column header to focus on the metrics that matter most to you.
Dive deeper into the key metrics for each potential multi-bagger stock, assessing the consistency and sustainability of their growth, profitability, and capital efficiency over time.
Remember, the screener is a powerful discovery tool, but it’s only the beginning. Always perform thorough due diligence before investing to ensure the stock aligns with your investment philosophy and risk profile.

The Allure of Multi-Bagger Stocks: Turning Thousands into Millions

Multi-bagger stocks, also known as 100-baggers, have the potential to turn a modest investment into a life-changing sum. These stocks are the holy grail for growth investors, offering returns of 100 times or more over the long term. While finding multi-baggers requires skill, patience, and a bit of luck, a well-designed multi-bagger stock screener can help you identify companies with the right characteristics for explosive growth.

Characteristics of Multi-Bagger Stocks: What to Look For

When screening for potential multi-bagger stocks, look for companies with the following attributes:

Strong Revenue Growth: Look for companies with a track record of consistent, high double-digit revenue growth, as this indicates strong demand for their products or services.
Expanding Margins: Companies with improving gross, operating, and net margins show an ability to scale efficiently and increase profitability as they grow.
Large Total Addressable Market (TAM): Multi-baggers often operate in markets with vast growth potential, allowing them to sustain high growth rates for extended periods.
Competitive Advantages: Look for companies with strong competitive moats, such as network effects, switching costs, or brand loyalty, which can help them maintain market dominance.
Visionary Management: Exceptional leadership with a proven track record of execution and innovation is crucial for navigating the challenges of rapid growth.

Lessons from Successful Multi-Bagger Investors: Peter Lynch and Thomas Rowe Price

Legendary investors like Peter Lynch and Thomas Rowe Price have successfully identified and invested in numerous multi-bagger stocks throughout their careers. By studying their approaches, you can gain valuable insights into the art of finding 100-bagger stocks:

Peter Lynch: Lynch, the former manager of the Magellan Fund at Fidelity Investments, is famous for his “invest in what you know” philosophy. He advocated for investing in companies with strong growth prospects, sustainable competitive advantages, and manageable debt levels. Lynch also emphasized the importance of patience, allowing winners to run while promptly cutting losses on underperforming investments.
Thomas Rowe Price, Jr.: Price, the founder of T. Rowe Price Associates, was an early proponent of growth investing. He sought companies with strong earnings growth, high profit margins, and sustainable competitive advantages. Price believed in thorough fundamental analysis and maintaining a long-term perspective, even in the face of short-term market volatility.

By incorporating the lessons from these successful investors into your own approach, you can sharpen your skills in identifying potential multi-bagger stocks.

The Role of a 100-Bagger Stock Screener in Your Investment Strategy

A 100-bagger stock screener is an essential tool for growth investors seeking to uncover the next big winners. By using a screener to filter stocks based on key growth metrics, you can create a more manageable watchlist of potential multi-baggers for further research. However, it’s important to remember that a screener is just the starting point—thorough due diligence, including analyzing financial statements, assessing management quality, and understanding the competitive landscape, is crucial before making any investment decisions.

When incorporating a multi-bagger stock screener into your investment strategy, consider the following tips:

Customize your screener settings to align with your investment goals and risk tolerance
Use the screener to identify trends and emerging opportunities across sectors and industries
Combine screener results with qualitative research to paint a complete picture of each potential investment
Regularly review and update your screener criteria to adapt to changing market conditions

By harnessing the power of a multi-bagger stock screener and committing to ongoing learning and analysis, you can position yourself to identify the companies with the potential to deliver life-changing returns. While the journey to finding the next 100-bagger may be challenging, the rewards for those who succeed can be truly transformative.

Embark on Your Journey to Exceptional Returns

Are you ready to embark on a journey to uncover the market’s next 100-baggers? Start your quest today with the Multi-Bagger Stock Screener and identify the companies with the potential to transform your portfolio. By focusing on businesses with strong revenue growth, high ROIC, and attractive valuations, you can position yourself to benefit from the power of compounding and long-term wealth creation.

Happy screening, and may you find your 100 bagger!

If you have any questions or need guidance along the way, simply reach out using the contact form.

Stock Investor IQ