3 "Expensive" Stocks That Are a Lot Cheaper Than You Realize
As the old saying goes, "beauty is in the eye of the beholder." The same can be said for investing, where value is perceived differently by each and every investor.
Traditionally, the price-to-earnings (P/E) ratio is viewed as one of the best measures of value. By examining a company's share price relative to the amount of earnings per share (EPS) it brought in over the trailing-12-month period, investors can quickly decide whether or not a stock is a good value, relative to the broader market and/or its peers.
Investors can also take this one step further by looking into the future with the forward P/E ratio. Since the stock market is always forward-looking, investors have the option of comparing a company's current share price to Wall Street's consensus EPS in the upcoming year.
Source Fool.com
