These 3 Stocks Might Be Getting a Little Too Expensive

The S&P 500 has fallen by more than 7% this year, causing many stocks to decline. But just because a stock's price has fallen doesn't mean it has become inexpensive.

To determine that, you need to look closer at the company's sales and earnings prospects while considering the valuation. One popular metric is the company's price-to-earnings ratio (P/E). Then you can make an apples-to-apples comparison when looking at different companies.

These three companies have become richly valued -- even after two of them have fallen in price this year. That means exercising caution before buying shares.

Source Fool.com