Multibagger
A colloquial label for a share whose price has risen to a multiple of its purchase price, such as a five-bagger for a fivefold rise.
Formula
Bagger Multiple = Current Price / Purchase Price
Unit
ratio (x, times)
In depth
The word is always applied backwards, to positions that have already worked, which makes it a description of history rather than a category of stock. It carries strong survivorship bias: the companies that multiplied are visible and the far larger number that fell 80% from the same starting screen are not. The multiple also depends entirely on the buyer's entry price, so the same stock is a ten-bagger for one holder and a loss for another. Treating 'multibagger' as a stock type to hunt for is a marketing frame, not an analytical one.
Worked example
Bought at ₹40 and now ₹320, the multiple is 320 / 40 = 8, an eight-bagger. Achieved over 12 years, that is a CAGR of about 19% a year — excellent, and a good deal less dramatic than the label makes it sound.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Multibagger” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.