2 of the Cheapest Stocks I Own
To start, I think it's important to disclose how I determine whether a stock is expensive or cheap. In that regard, the price-to-earnings (P/E) and the price-to-free-cash-flow (P/FCF) ratios are the two primary metrics I consider. The P/E measures how much you pay per dollar of earnings per share. It can be influenced by changes in the market price of a stock, changes in net profits, and changes in shares outstanding.
Similarly, the P/FCF ratio measures how much you are paying per dollar of free cash flow. This metric can be influenced by changes in the market price, changes in shares outstanding, as well as factors that determine a company's free cash flow, including profits and capital expenditure needs.
Without further ado, here are the two cheapest stocks I own according to those metrics.
Source Fool.com
