Stocks that give returns that are multiples of their cost are called multibagger stocks. These are undervalued stocks with strong fundamentals that can act as great investment options. A stock that doubles its price is called a two-bagger while if the price grows 10-times, it would be called a 10-bagger. Thus, multibaggers are stocks whose prices have risen multiple times their initial investment values.

​​Multibagger stock companies are strong on corporate governance and have businesses that are scalable within a short span of time.