Facebook Trades At A Similar Valuation to Google, Despite Growing Twice As Fast
When comparing two companies in the same industry, investors are usually willing to pay a higher P/E multiple for faster growth. Since the investor is getting more earnings growth from the faster growing stock the investor usually has to pay a premium vs. its slower growing counterpart. In the case of Facebook and Google […]
Consumer Staples Stocks Sport High Yields, But Stay Away For Now
At first glance, buying shares in dominant global consumer staples stocks that have dividend yields of over 3.5% may seem too good to pass up. Such is the case with many household consumer staples companies such as Coca Cola (NYSE: KO), Proctor and Gamble (NYSE: PG) and General Mills (NYSE: GIS). The yields are appealing […]
Is Facebook The Cheapest Stock On Wall Street?
As a value investor, I seek to invest in companies which have large market share, solid growth, and trade at a compelling valuation. However, these investments are rare because most times companies with these characteristics trade at very high valuation multiples, repelling most value investors. Facebook (NASDAQ: FB), the most dominant social networking company in […]