This Eye-Opening Ratio Shows Why Alphabet Stock Is a Buy Now
Stocks come in all shapes and sizes. Some are worth hundreds of thousands of dollars; some trade for pennies. This enormous gap can make apples-to-apples comparisons challenging.
One way to overcome this problem is by comparing stock ratios rather than stock prices. Using these valuation metrics, investors can see how expensive a stock is, no matter how high or low its price.
But with so many valuation ratios to use, they can be intimidating terrain for many investors. Today, I want to explain one: the PEG ratio.
Source Fool.com
