Alphabet Stock Can Double Your Money in 5 Years. Here's How.
Stock valuations have come down across the board in 2022. With the U.S. market down around 15% and many individual stocks down much more, investors now get the opportunity to buy stakes in high-quality businesses at a discount. A perfect example of this is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, YouTube, and Google Cloud. The stock's enterprise value-to-EBIT (earnings before interest and taxes) is down to one of its lowest levels in the last 10 years, due to a 27% decline year to date (YTD) combined with continued earnings growth.
GOOG EV to EBIT data by YCharts
This discounted valuation in Alphabet provides an excellent opportunity for investors. Here's how the stock can double within the next five years from today's prices.
Source Fool.com