Running Valuation Multiples on Stocks I Own/Watch
Take advantage of todays market turbulence by knowing the valuation multiple's of today's fastest growing company's
The markets are selling off, which was inevitable. Historically speaking, you can see that this has been a trend when the Fed tighten’s monetary policy. I brought it up a few weeks ago in a SubStack:
During these turbulent times, stocks typically sell off due to macro events and many companies will trade down drastically. It is important, as an investor, to think about the company’s you own, the long term thesis and the valuation that you bought it at.
Valuations matter, as an investor. It provides a historical reference of the intrinsic value of stocks. Knowing the intrinsic value of a stock will allow you to take advantage of a larger move. Personally, I use it as a guide to see where a good entry is to begin scaling into, or adding to, my positions.
“In the midst of chaos, there is also opportunity” - Sun Tzu
Keep in mind, I am thinking 2-3 years ahead and not days/weeks/months. All of these stocks have the chance to trade lower in the short term and it’s very unpredictable. But long term, may present an incredible opportunity.
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