Has Intuit Stock Become Too Pricey?
Intuit (NASDAQ: INTU) stock often trades at a significant premium to the rest of the stock market, particularly after rising 13% year to date. As of this writing, for instance, the stock has a price-to-earnings ratio of 65. Compare that with the average price-to-earnings ratio of stocks in the S&P 500 of 18.
Sure, Intuit's high-quality business model, which provides a consistent stream of cash flow for the company to reinvest into its business, pay dividends, and repurchase shares, deserves a high price-to-earnings multiple. But has the valuation run up too much recently?
To find out whether shares of the tech stock have become overvalued, let's take a closer look at Intuit's business, which includes software-as-a-service (SaaS) platforms TurboTax, Credit Karma, QuickBooks, and Mailchimp under its ownership.
Source Fool.com
