Square Looks Expensive. Is It a Buy?
With a whopping price-to-earnings (P/E) ratio of 219 as of Thursday's close, Square (NYSE: SQ) looks like one expensive investment. The stock hadn't moved much since late 2018, but effects from the pandemic have sent it skyrocketing 125% this year even as the company's net income fell back into negative territory.
However, simply judging a stock using the P/E ratio doesn't tell the whole story and isn't the best way to value this company. It is undeniably expensive, but Square is expensive for good reason.
Image source: Getty Images.
Source Fool.com