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Why Alphabet Isn't as Cheap as It Looks

Why Alphabet Isn't as Cheap as It Looks

Investors often rely on earnings multiples to gauge a stock's valuation. Comparing price-to-earnings (P/E) multiples is a good way to see how expensive one stock is relative to another. Tech giant Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) looks cheap right now based on its P/E ratio, but that can be a little misleading.