lystn

So you want to buy a stock online for an investment, but, you're wondering whether or not the stock is expensive or cheap. As a beginner investor who is just getting started in the world of stock market investing, this is a great question to be asking! You don't want to buy a stock that is expensive, you want to be focused on stocks you believe to be cheap. Here's a spoiler: "cheap" or "expensive" has nothing to do with the actual price of the stock. In all actuality, you could have a stock at $5 which would be considered "expensive" compared to a stock with a price of $500. How is this possible? In the world of fundamental analysis, there are many metrics which can be used to help determine whether a stock is expensive or cheap. The world is vast, meaning, there will be many varying opinions on what metrics are the best to use and in what ways those metrics should be used. In this video, I'll be talking about the P/E Ratio. This is one of the most basic fundamental metrics you can use and it is a great place to start with analyzing your potential stock investments. Let me show you more about how the P/E Ratio works and what types of dynamics you should consider if you decide to use this metric. Let's go!