4 Important Valuation Metrics All Investors Need to Know
As of this writing, the S&P 500 has risen 18% year to date and is within 3% of its all-time high. Against this backdrop, it's understandable why many investors are worried there's a lot of overvalued stocks out there. However, not all investors know how to objectively determine what's overvalued and what's not.
In this video from Motley Fool Live, recorded on Sept. 9, contributors Matthew Frankel and Jon Quast offer some ideas to investors about how to value stocks. Specifically, Matt explains key concepts like the price-to-earnings ratio, the price-to-sales ratio, the price-to-earnings growth ratio, and the price-to-book ratio. And while these four metrics are important for investors, this video explains something even more important: how to use them effectively.
Source Fool.com
