Flawed beliefs underpin notion that technology stocks are overvalued
The big players are not that expensive relative to their growth prospects and to consumer staples
30 May 2021 - 16:36
There has been much consternation about technology stocks appearing overvalued. While it pays to be cautious, especially after a multiyear bull run in which the tech-heavy Nasdaq composite has outperformed the S&P 500 by 8% annually over the last five years, the following beliefs in this assertion are flawed:
A stock trading on a high multiple automatically implies it is overvalued.As technology companies are a homogeneous group, a statement that applies to a subset of technology businesses applies to all of them...
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