Square (NYSE: SQ) has been one of the best-performing stocks of 2020. The stock price is up 240% year to date, driven primarily by the rapid growth of its Cash App, which has been become much more useful and necessary during the pandemic. But is the huge run-up in the stock price sustainable?
The price-to-earnings (P/E) ratio -- a key indicator of a company's valuation -- has skyrocketed above 300, which is extremely high by most standards. That has led many to wonder if the stock is too risky. Let's take a look.
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Source Fool.com