Anytime a stock is already trading at an inflated valuation, the potential for significant price appreciation shrinks. Worse yet, overpaying for a stock increases the risk of losses if a company's valuation falls back to its historical average or more in line with its peers.

With that in mind, here are three stocks that are starting to look a little too expensive.

With a market capitalization of $2.7 trillion, Apple (NASDAQ: AAPL) is the world's largest publicly-traded company and a particularly notable example of an expensive stock. Its shares have generated a total return of 31% so far in 2023, handily outpacing the S 500's total return of 9%.

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Source Fool.com